Question $2$: Job Costing

$[27$ marks$]$

JKL Electronics Ltd$,$ which uses a job costing system, had two jobs in process at the start of the year: Job number ER$241($$$176,000)$ and Job number ES$432($$$111,000).$ The following information is available:

The company applies manufacturing overhead based on machine hours. Budgeted overhead and machine activity for the year were anticipated to be $$1,700,000$ and $34,000$ hours, respectively.

The company worked on four jobs during the first quarter $(1$ January to $31$ March$).$ Direct materials used, direct labour cost incurred, and machine hours consumed were as shown in the following table.

$\backslash$table$[[$Job numbers,Direct material,Direct labour cost,Machine hours$],[$ER$241,$$$44,000,$$$70,000,2,400],[$ES$432,$Nil,$$46,000,1,400],[$AL$153,$$$90,000,$$$130,000,4,000],[$AM$554,$$$32,000,$$$21,600,1,000]]$

Manufacturing overhead incurred during the first quarter consisted of depreciation of $$70,000,$ indirect labour of $$122,000,$ indirect materials used of $$100,000$ and other factory costs of $$280,000.$

The company completed job number ER$241$ and job number ES$432$ during the first quarter.

Job number ES$432$ was sold on credit, producing a profit of $$69,400$ for the firm.

Required: Show ALL your workings.

$($i$)$ Calculate the company's predetermined overhead rate.

$(1$ mark$)$

$($ii$)$ Calculate the amount the company has over$-$applied or under$-$applied manufacturing overhead during the first quarter.

$(4$ marks$)$

$($iii$)$ Calculate the cost of the jobs completed as of $31$ March. Show the detail of each separate job.

$(8$ marks$)$

$($iv$)$ Calculated the sales revenue earned on the sale of job number ES$432.$

$(2$ marks$)$

$($v$)$ Calculate the cost of the jobs still in production as of $31$ March.

$(6$ marks$)$

$($vi$)$ Did the cost of the finished goods inventory increase or decrease during the first quarter? Calculate the amount of increase$/$decrease$.$

$(4$ marks$)$

$($vii$)$ Record the journal to close the over$-$applied or under$-$applied manufacturing overhead calculated in requirement $($ii$)$ to Cost of Goods Sold.

$(2$ marks$)$