Using the information given in the problem (please see pictures) I have to find:1. What was the amount of inventory in the beginning Finished Goods and beginning Work-in-Process accounts for year 3?2. What was the final (total) cost charged to job MC-275? O’Leary incurred direct materials costs of $60,600 and used an additional 660 hours in year 3 to complete job MC-275.3. What was the over- or underapplied overhead for year 3?4. What is the minimum amount O’Leary can bid on the job and still not incur a loss? A customer has asked O’Leary to bid on a job to be completed in year 4. O’Leary estimates that the job will require about $94,300 in direct materials and 5,180 direct labor-hours. Because of the economy, O’Leary expects demand for its services to be low in year 4, and the CEO wants to bid aggressively, but does not want to lose any money on the project. O’Leary estimates that there would be virtually no sales or administrative costs associated with this job. I have tried to find solutions for #1 and #3 but I kept getting the wrong answers and I wasn't sure about #2 and #4 O'Leary Corporation manufactures special purpose portable structures (huts, mobile offices, and so on) for use at construction sites. Itonly builds to order (each unit is bullt to customer specifications). O'Leary uses a normal job costing system. Direct labor at O'Leary ispald $35 per hour, but the employees are not paid if they are not working on jobs. Manufacturing overhead is assigned to jobs by apredetermined rate on the basis of direct labor-hours. The company Incurred manufacturing overhead costs during two recent years(adjusted for price-level changes using current prices and wage rates) as follows.Year 1Year 2Direct labor-hours worked70, 60057,600Manufacturing overhead costs incurredIndirect labor$2,304, 000864, 000$2,984, 0001,859,000706, e00663, 000145, 200786, 6982,090, 5ee823,610Employee benefitsSupplies576, 000Power558, 000Heat and light145, 200667,05e2,890, 500859, 250SupervisionDepreciationProperty taxes and insuranceTotal manufacturing overhead costs$9,178,000$8,064, 000At the beginning of year 3, O'Leary has two jobs, which have not yet been delvered to customers. Job MC-270 was completed onDecember 27, year 2 It is scheduled to ship on January 7, year 3. Job MC-275 Is still in progress. For the purpose of computing thepredetermined overhead rate, O'Leary uses the previous year's actual overhead rate. Data on direct material costs and direct labor-hours for these Jobs in year 2 follow.Job MC-270Job MC-275Direct material costs$273,6002,680 hours$498, 6003, 380 hoursDirect labor-hours During year 3, O'Leary Incurred the following direct material costs and direct labor-hours for all jobs worked in year 3, Including thecompletion of Job MC-275.Direct material costs$11,843, 600Direct labor-hours77,600Actual manufacturing overhead$ 9,984,000At the end of year 3, there were four jobs that had not yet shipped. Data on these Jobs follow.MC - 399$32,50e1,480 hoursMC-389MC -390MC-397$70,6002,880 hours$107, 1006,280 hoursIn progressDirect materials$46,8001,776 hoursDirect labor-hoursJob statusFinishedFinishedIn progress

Name: Using the information given in the problem (please see pictures) I hav
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Description: Using the information given in the problem (please see pictures) I have to find:1. What was the amount of inventory in the beginning Finished Goods and beginning Work-in-Process accounts for year 3?2. What was the final (total) cost charged to job MC

Finished goods: In process costing, finished goods are referred to the completed units of products.…

Answered: Using the information given in the…

Principles of Accounting Volume 2

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ISBN:9781947172609

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Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2PA: York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of...

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Using the information given in the problem (please see pictures) I have to find:

1. What was the amount of inventory in the beginning Finished Goods and beginning Work-in-Process accounts for year 3?

2. What was the final (total) cost charged to job MC-275? O’Leary incurred direct materials costs of $60,600 and used an additional 660 hours in year 3 to complete job MC-275.

3. What was the over- or underapplied overhead for year 3?

4. What is the minimum amount O’Leary can bid on the job and still not incur a loss? A customer has asked O’Leary to bid on a job to be completed in year 4. O’Leary estimates that the job will require about $94,300 in direct materials and 5,180 direct labor-hours. Because of the economy, O’Leary expects demand for its services to be low in year 4, and the CEO wants to bid aggressively, but does not want to lose any money on the project. O’Leary estimates that there would be virtually no sales or administrative costs associated with this job.

I have tried to find solutions for #1 and #3 but I kept getting the wrong answers and I wasn't sure about #2 and #4

O'Leary Corporation manufactures special purpose portable structures (huts, mobile offices, and so on) for use at construction sites. It
only builds to order (each unit is bullt to customer specifications). O'Leary uses a normal job costing system. Direct labor at O'Leary is
pald $35 per hour, but the employees are not paid if they are not working on jobs. Manufacturing overhead is assigned to jobs by a
predetermined rate on the basis of direct labor-hours. The company Incurred manufacturing overhead costs during two recent years
(adjusted for price-level changes using current prices and wage rates) as follows.
Year 1
Year 2
Direct labor-hours worked
70, 600
57,600
Manufacturing overhead costs incurred
Indirect labor
$2,304, 000
864, 000
$2,984, 000
1,859,000
706, e00
663, 000
145, 200
786, 698
2,090, 5ee
823,610
Employee benefits
Supplies
576, 000
Power
558, 000
Heat and light
145, 200
667,05e
2,890, 500
859, 250
Supervision
Depreciation
Property taxes and insurance
Total manufacturing overhead costs
$9,178,000
$8,064, 000
At the beginning of year 3, O'Leary has two jobs, which have not yet been delvered to customers. Job MC-270 was completed on
December 27, year 2 It is scheduled to ship on January 7, year 3. Job MC-275 Is still in progress. For the purpose of computing the
predetermined overhead rate, O'Leary uses the previous year's actual overhead rate. Data on direct material costs and direct labor-
hours for these Jobs in year 2 follow.
Job MC-270
Job MC-275
Direct material costs
$273,600
2,680 hours
$498, 600
3, 380 hours
Direct labor-hours

During year 3, O'Leary Incurred the following direct material costs and direct labor-hours for all jobs worked in year 3, Including the
completion of Job MC-275.
Direct material costs
$11,843, 600
Direct labor-hours
77,600
Actual manufacturing overhead
$ 9,984,000
At the end of year 3, there were four jobs that had not yet shipped. Data on these Jobs follow.
MC - 399
$32,50e
1,480 hours
MC-389
MC -390
MC-397
$70,600
2,880 hours
$107, 100
6,280 hours
In progress
Direct materials
$46,800
1,776 hours
Direct labor-hours
Job status
Finished
Finished
In progress

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