Bella Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours....

Transcribed Image Text:

Bella Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated manufacturing overhead for the year would be $250,000 and machine hours used would be 10,000. The following information pertains to December of the current year: Job X Job Y Job Z Totals Work in process, December 1 $20,000 $29,000 $50,000 $99,000 December production activity: Materials requisitioned Direct labor costs $ 5,000 $ 3,000 $6,000 $4,000 $8,000 $5,000 $19,000 $12,000 Machine hours 800 700 500 2,000 Assume that only job Z was completed during the month. a. Compute the predetermined overhead application rate based on machine hours. b. Determine the total costs associated with each job assuming overhead was applied based on machine hours. Job X Job Y Job Z c. Give the journal entry to record the completion of Job Z. d. What was the ending balance of work-in-process inventory assuming overhead was applied based on machine hours? Determine the total costs associated with each job assuming overhead was applied based on an overhead rate of 140 percent of direct labor costs. е. f. What was the ending balance of work-in-process inventory assuming overhead was applied based on direct labor costs? Bella Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated manufacturing overhead for the year would be $250,000 and machine hours used would be 10,000. The following information pertains to December of the current year: Job X Job Y Job Z Totals Work in process, December 1 $20,000 $29,000 $50,000 $99,000 December production activity: Materials requisitioned Direct labor costs $ 5,000 $ 3,000 $6,000 $4,000 $8,000 $5,000 $19,000 $12,000 Machine hours 800 700 500 2,000 Assume that only job Z was completed during the month. a. Compute the predetermined overhead application rate based on machine hours. b. Determine the total costs associated with each job assuming overhead was applied based on machine hours. Job X Job Y Job Z c. Give the journal entry to record the completion of Job Z. d. What was the ending balance of work-in-process inventory assuming overhead was applied based on machine hours? Determine the total costs associated with each job assuming overhead was applied based on an overhead rate of 140 percent of direct labor costs. е. f. What was the ending balance of work-in-process inventory assuming overhead was applied based on direct labor costs?