Berg-Warner Automotive uses job costing in which factory overhead is applied on the basis of direct labor cost. Any overapplied or underapplied overhead is considered material. The April 1 2013, balances in selected accounts are:

Inventories, April 1:

Materials (all direct) $124,000

Work in Process (Job 354) 113,400

Finished Goods (Job 243) 178,200

Job 354 was the only job in the manufacturing process at the end of March. Job 243 was completed during March but was not sold.

These transactions occurred in manufacturing during April 2013:

a. Direct Materials were purchased on account, $143,000

b. Materials were requisitioned for use in production:

Direct materials:

Job 354 - $23,000

Job 475 - Unkown

Job 523 - 72,500

Indirect materials 18,700

c. An analysis of labor time cards reveals the following labor usage for April:

Direct labor:

Job 354 - Unknown

Job 475 - $102,000

Job 523 - 36,500

Indirect labor 97,000

d. Depreciation of the factory building and equipment during April amounted to $76,000.

e. Rent for the warehouse was paid in cash, $6,500.

f. Insurance cost covering the factory operation was paid in cash, $11,000.

g. Other factory overhead costs amounted to $63,000.

h. $287,500 of factory overhead cost was applied to production on the basis of direct labor cost.

i. Job 354 and Job 475 were completed and transferred to the Finished Goods account. The balance of the Work In Process account on April 30, 2013 was $154,625.

j. Job 243 and Job 354 were sold on account during the month. The Cost of Goods Sold for these jobs was $520,475. The balance of the Finished Goods account on April 30 showed $254,875.

REQUIRED:

1. What was the amount of factory overhead applied to Job 523?

2. Calculate the firm’s predetermined factory overhead rate as a percentage of direct labor cost.

3. Complete the Cost of Goods Manufactured in April showing the Normal COGM?

4. What was the Direct Materials cost incurred in April to initiate and complete Job 475?

5. What was the Direct Labor cost incurred in April to complete Job 354?

6. What was the balance of Direct Materials account on April 30, 2013?

7. Calculate the amount of over applied or under applied overhead in April.

8. Prepare a journal entry to dispose of the over applied or under applied overhead.