Reference no: EM132426698

Questions -

Q1. Dorchester Company, on March 1, 2019 has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. On March 1, Dorchester started into production 15,500 units. At the end of the month there were 10,000 units completed and transferred into the Finished Goods Inventory. The ending WIP was 55% complete with respect to conversion. For the month of March the following costs were incurred and recorded in the WIP:

Direct Material $16,000

Direct Labor 17,000

Factory Overhead 15,000

Dorchester uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of conversion for the month of March

Q2. On March 31, 2019, Dorchester Corporation recorded the following factory overhead costs incurred:

Factory Manager Salary $5,500

Factory Utilities 2,800

Machinery Deprecation 9,000

Machinery Repairs 1,800

Factory Rent 2,000

The overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $22,000 would be incurred, and 2,000 direct labor hours would be worked. During March, 650 hours were actually worked on Job Order 3-1 and 1,200 hours were actually worked on Job Order 3-2. Use this information to prepare the March 31 General Journal entries

1. To record the factory overhead costs.

2. The allocation of factory overhead to Job Order 3-1.

3. The allocation of factory overhead to Job Order 3-2.

4. The adjusting entry to dispose of any over or under application of factory overhead.