The Harriott manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 31,400 machine hours would be worked and $5,024,000 overhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February: WIP Inventory A/C November 1 Bal. b/f $51,250 256,400| Direct Materials Used Other transactions incurred: • Indirect material issued to production was s40,360 • Total manufacturing labour incurred in November was s368,000, 75% of this amount represented direct labour. • Other manufacturing overhead costs incurred for November amounted to $340,490. • Two jobs were completed with total costs of s384,000 & $270,000 respectively. They were sold on account at a margin of 33%% on sales. Required: i) Compute Harriott's predetermined manufacturing overhead rate for 2020. ii) State the journal entries necessary to record the above transactions in the general journal: a) For direct materials used in November b) For indirect material issued to production in November c) For total manufacturing labour incurred in November d) To assign manufacturing labour to the appropriate accounts e) For other manufacturing overhead incurred f) For manufacturing overhead applied to production for November, given that Harriott manufacturing company worked 2.86o machine hours.

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Chapter17: Acquiring And Implementing Accounting Information Systems
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* ACCT1003 | S2 21/22: Week 6-Dis x
O Discussion Question_ Week 6_ X
G how to take a screenshot on a la
O File
C:/Users/Gis/Downloads/Discussion%20Question%20_%20Week%206%20_%20Job%20Costing%201%20(3).pdf
Discussion Question _ Week 6_ Job Costing I (3).pdf
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The Harriott manufacturing company uses job order costing system. The company uses machine
hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 31,400
machine hours would be worked and $5,024,000 0verhead cost would be incurred during 2020.
The following activities took place in the work in process inventory during February:
WIP Inventory A/C
November 1 Bal. b/f
$51,250
256,400
Direct Materials Used
Other transactions incurred:
Indirect material issued to production was $40,360
• Total manufacturing labour incurred in November was $368,000, 75% of this amount
represented direct labour.
Other manufacturing overhead costs incurred for November amounted to $340,490.
Two jobs were completed with total costs of $384,000 & $270,000 respectively. They were
sold on account at a margin of 33½% on sales.
Required:
i)
ii)
Compute Harriott's predetermined manufacturing overhead rate for 2020.
State the journal entries necessary to record the above transactions in the general journal:
a) For direct materials used in November
b) For indirect material issued to production in November
c) For total manufacturing labour incurred in November
d) To assign manufacturing labour to the appropriate accounts
e) For other manufacturing overhead incurred
f) For manufacturing overhead applied to production for November, given that Harriott
manufacturing company worked 2,860 machine hours.
g) To move the completed jobs into finished goods inventory
h) To sell the two completed jobs on account
iii)
Calculate the manufacturing overhead variance for Harriott and state the journal entries
necessary to dispose of the variance.
iv)
What is balance on the Cost of Goods Sold account after the adjustment
1:14 PM
P Type here to search
28°C Mostly sunny
2/24/2022
Transcribed Image Text:* ACCT1003 | S2 21/22: Week 6-Dis x O Discussion Question_ Week 6_ X G how to take a screenshot on a la O File C:/Users/Gis/Downloads/Discussion%20Question%20_%20Week%206%20_%20Job%20Costing%201%20(3).pdf Discussion Question _ Week 6_ Job Costing I (3).pdf 1 /1|| 100% The Harriott manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 31,400 machine hours would be worked and $5,024,000 0verhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February: WIP Inventory A/C November 1 Bal. b/f $51,250 256,400 Direct Materials Used Other transactions incurred: Indirect material issued to production was $40,360 • Total manufacturing labour incurred in November was $368,000, 75% of this amount represented direct labour. Other manufacturing overhead costs incurred for November amounted to $340,490. Two jobs were completed with total costs of $384,000 & $270,000 respectively. They were sold on account at a margin of 33½% on sales. Required: i) ii) Compute Harriott's predetermined manufacturing overhead rate for 2020. State the journal entries necessary to record the above transactions in the general journal: a) For direct materials used in November b) For indirect material issued to production in November c) For total manufacturing labour incurred in November d) To assign manufacturing labour to the appropriate accounts e) For other manufacturing overhead incurred f) For manufacturing overhead applied to production for November, given that Harriott manufacturing company worked 2,860 machine hours. g) To move the completed jobs into finished goods inventory h) To sell the two completed jobs on account iii) Calculate the manufacturing overhead variance for Harriott and state the journal entries necessary to dispose of the variance. iv) What is balance on the Cost of Goods Sold account after the adjustment 1:14 PM P Type here to search 28°C Mostly sunny 2/24/2022
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