Question : 161.Rooftop Solar estimated the following annual costs: Expected annual direct labor : 1302700

161.Rooftop Solar estimated the following annual costs:

Expected annual direct labor hours              12,000

Expected annual direct labor cost              $198,000

Expected machine hours              10,400

Expected material cost for the year              $65,000

Expected manufacturing overhead              $218,400

Job 612used $350 of direct materials, 26direct labor hours, and 14machine hours. Actual labor cost is $17per hour.

a.If Rooftop Solarallocates overhead based upon machine hours, how much is the overhead rate?

b.Determine the cost of job 612.

162.During the month of August, Pamator Products applied overhead to jobs using an overhead rate of $0.60 per dollar of direct labor. Direct labor in August was $108,000. Actual overhead in August was $65,200, and consisted of the following items:

Indirect materials              $28,400

Indirect labor               7,900

Utilities               2,400

Depreciation              13,500

Repair expense              13,000

Total               $65,200

a.Prepare a journal entry to record overhead applied to jobs.

b.Prepare a journal entry to record actual overhead.

163.During the month of August, WinslowChemicals applied overhead to jobs using an overhead rate of $0.80 per dollar of direct labor. Direct labor in August was $65,000. Actual overhead in August was $51,200. Actual overhead was composed of the following items:

Indirect materials              $ 21,200

Indirect labor               6,800

Utilities               1,400

Depreciation              12,500

Repair expense                  9,300

Total               $51,200

a.Determine the balance in manufacturing overhead and prepare a journal entry to close the balance to cost of goods sold.

b.Why is it important to close the balance in manufacturing overhead?

c.What is the justification for assigning the balance in manufacturing overhead to Cost of Goods Sold rather than apportioning it to three accounts?

164.At the end of the period, Harris Renovators had the following balances in selected accounts:

Raw Materials Inventory              $  42,000

Work in Process Inventory              88,000

Finished Goods              64,000

Cost of Goods Sold              848,000

Manufacturing Overhead (debit balance)              21,000

a.Prepare the journal entry to close the Manufacturing Overhead account if the balance in the account is considered material.

b.Prepare the entry assuming the balance is considered to be immaterial.

165.Window Tinters uses a job-order costing system. The balances at the end of the period for the selected accounts are as follows:

Raw Materials Inventory               $82,000

Work in Process Inventory               156,000

Finished Goods Inventory               144,000

Cost of Goods Sold               1,200,000

Manufacturing Overhead (debit)              12,000

Prepare a journal entry to close the Manufacturing Overhead account assuming that the over or underapplied overhead is material.