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S. J. MATEK Marine Machine Co., Ltd. manufactures outboard motors and an assortment of other marine equipment. The company uses a job-order costing system. Normal costing is used, and manufacturing overhead is applied on the basis of machine hours. Estimated manufacturing overhead for the year is $1,520,200, and management estimates the firm's practical capacity at 69,100 machine hours. The firm purchased marine propellers from Guangdong Snow land Refrigeration Equipment Co., Ltd. for $8,240 on account. b. A requisition was filed by the Gauge Department supervisor for 280 pounds of clear plastic. The material cost $ 0.70 per pound when it was purchased. The Motor Testing Department supervisor requisitioned 320 feet of electrical wire, which is considered an indirect material. The wire cost $0.10 per foot when it was purchased. An electric utility bill of $900 was paid in cash. Direct-labor costs incurred in May were $73,500. C. d. e. f. g. May's insurance cost was $2,100 for insurance on the cars driven by sales personnel. The policy had been prepaid in March. h. Metal tubing costing $2,800 was purchased on account. i. A cash payment of $1,850 was made on outstanding accounts payable. j. Indirect-labor costs of $19,000 were incurred during May. Depreciation on equipment for May amounted to $8,500. Job number G22, consisting of 60 tachometers, was finished during May. The total cost of the job was $1,200. k. m. During May, 6,500 machine hours were used. Sales on account for May amounted to $181,000. The cost of goods sold in May was $142,500. Required: 1. Calculate the company's predetermined overhead rate for the year. Prepare journal entries to record the following events, which occurred during May

S. J. MATEK Marine Machine Co., Ltd. manufactures outboard motors and an assortment of other marine equipment. The company uses a job-order costing system. Normal costing is used, and manufacturing overhead is applied on the basis of machine hours. Estimated manufacturing overhead for the year is $1,520,200, and management estimates the firm's practical capacity at 69,100 machine hours. The firm purchased marine propellers from Guangdong Snow land Refrigeration Equipment Co., Ltd. for $8,240 on account. b. A requisition was filed by the Gauge Department supervisor for 280 pounds of clear plastic. The material cost $ 0.70 per pound when it was purchased. The Motor Testing Department supervisor requisitioned 320 feet of electrical wire, which is considered an indirect material. The wire cost $0.10 per foot when it was purchased. An electric utility bill of $900 was paid in cash. Direct-labor costs incurred in May were $73,500. C. d. e. f. g. May's insurance cost was $2,100 for insurance on the cars driven by sales personnel. The policy had been prepaid in March. h. Metal tubing costing $2,800 was purchased on account. i. A cash payment of $1,850 was made on outstanding accounts payable. j. Indirect-labor costs of $19,000 were incurred during May. Depreciation on equipment for May amounted to $8,500. Job number G22, consisting of 60 tachometers, was finished during May. The total cost of the job was $1,200. k. m. During May, 6,500 machine hours were used. Sales on account for May amounted to $181,000. The cost of goods sold in May was $142,500. Required: 1. Calculate the company's predetermined overhead rate for the year. Prepare journal entries to record the following events, which occurred during May

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 1PA: Gwinnett County Chrome Company manufactures three chrome-plated productsautomobile bumpers, valve...
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S. J. MATEK Marine Machine Co., Ltd. manufactures outboard motors and an assortment of other marine equipment. The company uses a job-order costing system. Normal costing is used, and manufacturing overhead is applied on the basis of machine hours. Estimated manufacturing overhead for the year is $1,520,200, and management estimates the firm's practical capacity at 69,100 machine hours. The firm purchased marine propellers from Guangdong Snow land Refrigeration Equipment Co., Ltd. for $8,240 on account. a. b. A requisition was filed by the Gauge Department supervisor for 280 pounds of clear plastic. с. The material cost $ 0.70 per pound when it was purchased. d. The Motor Testing Department supervisor requisitioned 320 feet of electrical wire, which is considered an indirect material. The wire cost $ 0.10 per foot when it was purchased. An electric utility bill of $900 was paid in cash. e. f. Direct-labor costs incurred in May were $73,500. g. May's insurance cost was $2,100 for insurance on the cars driven by sales personnel. The policy had been prepaid in March. h Metal tubing costing $2,800 was purchased on account. i. A cash payment of $1,850 was made on outstanding accounts payable. j. Indirect-labor costs of $19,000 were incurred during May. k. Depreciation on equipment for May amounted to $8,500. Job number G22, consisting of 60 tachometers, was finished during May. The total cost of the job was $1,200. m. During May, 6,500 machine hours were used. Sales on account for May amounted to $181,000. The cost of goods sold in May was $142,500. n Required: 1. Calculate the company's predetermined overhead rate for the year. Prepare journal entries to record the following events, which occurred during May
Transcribed Image Text:S. J. MATEK Marine Machine Co., Ltd. manufactures outboard motors and an assortment of other marine equipment. The company uses a job-order costing system. Normal costing is used, and manufacturing overhead is applied on the basis of machine hours. Estimated manufacturing overhead for the year is $1,520,200, and management estimates the firm's practical capacity at 69,100 machine hours. The firm purchased marine propellers from Guangdong Snow land Refrigeration Equipment Co., Ltd. for $8,240 on account. a. b. A requisition was filed by the Gauge Department supervisor for 280 pounds of clear plastic. с. The material cost $ 0.70 per pound when it was purchased. d. The Motor Testing Department supervisor requisitioned 320 feet of electrical wire, which is considered an indirect material. The wire cost $ 0.10 per foot when it was purchased. An electric utility bill of $900 was paid in cash. e. f. Direct-labor costs incurred in May were $73,500. g. May's insurance cost was $2,100 for insurance on the cars driven by sales personnel. The policy had been prepaid in March. h Metal tubing costing $2,800 was purchased on account. i. A cash payment of $1,850 was made on outstanding accounts payable. j. Indirect-labor costs of $19,000 were incurred during May. k. Depreciation on equipment for May amounted to $8,500. Job number G22, consisting of 60 tachometers, was finished during May. The total cost of the job was $1,200. m. During May, 6,500 machine hours were used. Sales on account for May amounted to $181,000. The cost of goods sold in May was $142,500. n Required: 1. Calculate the company's predetermined overhead rate for the year. Prepare journal entries to record the following events, which occurred during May
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