4-31. JOB COSTING, JOURNAL ENTRIES. Docks Transport assembles prestige manufactured homes. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead allocated at a budgeted $21 per machine-hour in 2020). The following data (in millions) show operation costs for 2020: Materials Control, beginning balance, January 1, 2020 $ 13 Work-in-Process Control, beginning balance, January 1, 2020 4 Finished Goods Control, beginning balance, January 1, 2020 7 Materials and supplies purchased on credit 154 Direct materials used 147 Indirect materials (supplies) issued to various production departments 19 Direct manufacturing labor 90 Indirect manufacturing labor incurred by various production departments 32 Depreciation on plant and manufacturing equipment 26 Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as repairs, utilities, etc., with a corresponding credit to various liability accounts) 14 Manufacturing overhead allocated, 4,000,000 actual machine-hours ? Cost of goods manufactured 295 Revenues 400 Cost of goods sold 293 2. Prepare journal entries. Number your entries. Explanations for each entry may be omitted. Post to T-accounts. What is the ending balance of Work-in-Process Control? 3. Show the journal entry for adjusting for under- or overallocated manufacturing overhead directly as a year-end writeoff to Cost of Goods Sold. Post the entry to T-accounts. 4. How did Docks Transport perform in 2020? 4-39. PRORATION OF OVERHEAD. (Z. Iqbal, adapted) The Zaf Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2020: Budgeted manufacturing overhead costs $4,800,000 Overhead allocation base Machine-hours Budgeted machine-hours 80,000 Manufacturing overhead costs incurred $4,900,000 Actual machine-hours 75,000 Machine-hours data and the ending balances (before proration of under- or overallocated overhead) are as follows: Actual Machine-Hours Actual Machine-Hours 2020 End of year Balance 2020 End-of-Year Balance Cost of Goods Sold 60,000 $8,000,000 Finished Goods Control 11,000 1,250,000 Work-in-Process Control 4,000 750,000 1. Compute the budgeted manufacturing overhead rate for 2020. 2. Compute the under- or overallocated manufacturing overhead of Zaf Radiator in 2020. Adjust for this amount using the following: 1. a. Write-off to Cost of Goods Sold 2. b. Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold 4-43. OVERVIEW OF GENERAL LEDGER RELATIONSHIPS. Brane Company uses normal costing in its job-costing system. The company produces custom bikes for toddlers. The beginning balances (December 1) and ending balances (as of December 30) in their inventory accounts are as follows: Additional information: a. Direct materials purchased during December were $66,400. b. Cost of goods manufactured for December was $235,000. c. No direct materials were returned to suppliers. d. No units were started or completed on December 31 and no direct materials were requisitioned on December 31. e. The manufacturing labor costs for the December 31 working day: direct manufacturing labor, $4,350, and indirect manufacturing labor, $1,450. f. Manufacturing overhead has been allocated at 140% of direct manufacturing labor costs through December 31. Required 1. Prepare journal entries for the December 31 payroll. 2. Use T-accounts to compute the following: a. The total amount of materials requisitioned into work in process during December b. The total amount of direct manufacturing labor recorded in work in process during December (Hint: You have to solve requirements 2b and 2c simultaneously) c. The total amount of manufacturing overhead recorded in work in process during December d. Ending balance in work in process, December 31 e. Cost of goods sold for December before adjustments for under- or overallocated manufacturing overhead 3. Prepare closing journal entries related to manufacturing overhead. Assume that all under- or overallocated manufacturing overhead is closed directly to Cost of Goods Sold.