West Manufacturing Worked on the Following Jobs in December

question 94

Essay

West Manufacturing worked on the following jobs in December.
Beginning

Jobs R2100 and D2200 were completed, shipped and invoiced to customers. Estimated total direct labor hours for the year was 44,000 and total estimated manufacturing overhead was $352,000.
Actual manufacturing overhead cost incurred during the year was $375,000. Actual direct labor hours were 45,000. The labor rate for the year averaged $10 per hour. All jobs are billed at 150% o unadjusted manufacturing cost.
Based on the information given:
1. Determine the overhead rate for West Manufacturing;
2. Prepare the journal entry to apply manufacturing overhead to manufacturing process for the month of December;
3. Prepare the journal entry to transfer and bill the completed items (skip Finished Goods entry).
4. Determine the balance in the Work in Process account at the end of December.
5. Compute the amount of over/underapplied overhead.

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Definitions:

OSHA Safety Standards

Regulations and guidelines issued by the Occupational Safety and Health Administration to ensure workplace safety and health.

Conflict Resolution

The process of resolving a dispute or disagreement between two or more parties in a peaceful and mutually satisfactory manner.

Coworkers

Individuals who work together in the same organization or workplace.

Resolve a Conflict

The process of finding a peaceful solution to a disagreement between parties.