Requirement 1 (MOH Rate Solution), Requirement 2 (Jornal Entries Solution)

B c 1 2 The following transactions were recorded for the year. 3 3 4 a Raw materials were purchased on account, $560,000. Raw materials used in production, $530,000. All of the raw materials were used as direct 5 b materials. The following costs were accrued for employee services direct labor, $650,000; indirect labor, 6 C $200,000, selling and administrative salaries, $290,000 Incurred various selling and administrative expenses (eg, advertising, sales travel costs, and 7 d finished goods warehousing), $417,000 8 e Incurred various manufacturing overhead costs (e.g., rent, insurance, and utilities), $550,000. Manufacturing overhead cost was applied to production. The company actually worked 46,000 9 f direct labor-hours on all jobs during the year Jobs costing $1,730,000 to manufacture according to their job cost sheets were completed 10 g during the year Jobs were sold on account to customers during the year for a total of $2,850,000. The jobs cost 11 h $1,740,000 to manufacture according to their job cost sheets. 12 13 14 1 Requirement 1 2 Compute the predetermined overhead allocation rate for fiscal year 2024. 3 4 Total estimated overhead costs/Total estimated machine hours Predetermined overhead allocation rate 6 7 oo 8 9 Total estimated overhead costs | Total estimated Direct-Labor hours 10 Predetermined overhead allocation rate 11 12 13 14 15 Requirement 2 Journalize the transactions in the general journal. Date Account/Explanation Debit Credit (a) (b) (C) (d) (e) (1) 30 31 32 (9) g 33 34 35 36 (h) 37 38 39 40 41 42 2 Using Excel 3 Boyd Corporation is a manufacturer that uses job-order costing. On January 1, 4 2024, the company's inventory balances were as follows: 5 6 Raw Materials Inventory $60,000 7 Work-in-Process Inventory $38,000 Finished Goods Inventory $55,000 000 VOA 8 9 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, 2024, the company's predetermined overhead rate per direct labor-hour was based on a cost formula that estimated $812,500 of total | 10 manufacturing overhead for an estimated activity level of 65,000 direct labor-hours. 11 12 Requirements: Compute the predetermined overhead allocation rate for fiscal year 2024. Ina tha hlunnhadad arnan for innuta Requirements: Compute the predetermined overhead allocation rate for fiscal year 2024. 1. Use the blue shaded areas for inputs. Use Excel to journalize the transactions listed in the Transactions tab for 2. the current year, 2024. Enter the beginning balances for the inventories in the T-accounts. Assume the rest of the accounts have beginning balances of zero. Post the journal entries to T-accounts. T-account balances will automatically calculate except for Manufacturing Overhead. You will need to calculate 3. the appropriate balance in that account. 4. Adjust the manufacturing overhead account. Prepare the journal entry. b. Post to T-accounts. 5. Complete the Schedule of Cost of Goods Manufactured for 2024. 6. Complete the cost of Goods Sold schedule for 2024. 7 Dronare income statements in good form for Boyd for 2024. a. 1 Manufacturing Accounts 2 3 Accounts Receivable 4 Raw Materials Inventory 5 Work-in-Process Inventory 6 Finished Goods Inventory 7 Accounts Payable 8 Wages Payable 9 Sales Revenue 10 Manufacturing Overhead 11 Cost of Goods Sold 12 Selling & Administrative Expense 13 14 15 1 16