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Miller Company ases a perpetual inventory system and has a highly labour intrnadve production process so it assigns manufacturing ovechead based on direct labour cost Miller's pevdetermined overhead application rate for zo18 was computed from the following Total estimated factory overhead Total estinsated direct labour cost 8,o The fallowing activities took place in the work in process inventory during August WIP Inventory A/C August Ral 8,600 Direct Materials Used 136,6a5 Ot her transactions incueted: Indirect material issued to peoduction was s22 500 . Total manufacturing labour incurred in Apnl was saoSon, 70% of this amount * represented direct labour . Other manufacturing overhead costs incurred for April amounted to ssygu6oo. . Two hs were, completed with total costs of saoSoo & Sana,6uo respectively. They were sold on occoune ac a mrk up of 90% on cost. Required i)Compute Miller's predetermined manufacturing overhead rate for soms ii) State the journal entries necessary to record the above transactions in the general ournal a) For direct materials wsed ins August b) For indirect material issued to production in August c) For total manufacturing labour incurred in August d) To essign manafacturing labour to the appropriate accounts el For other manufacturing overhead incurresd 0) For manafacturing ovechead allocated for August g) To move the completed jobs into finished goods inventory h) To sell the two completed jobs on account Calculate the manufacturing overhead variance for Miller and state the journal entries necessary to dispose of the variance. iii) iv) What is balance on the Cost of Goods Sold account after the adjustment Miller Company ases a perpetual inventory system and has a highly labour intrnadve production process so it assigns manufacturing ovechead based on direct labour cost Miller's pevdetermined overhead application rate for zo18 was computed from the following Total estimated factory overhead Total estinsated direct labour cost 8,o The fallowing activities took place in the work in process inventory during August WIP Inventory A/C August Ral 8,600 Direct Materials Used 136,6a5 Ot her transactions incueted: Indirect material issued to peoduction was s22 500 . Total manufacturing labour incurred in Apnl was saoSon, 70% of this amount * represented direct labour . Other manufacturing overhead costs incurred for April amounted to ssygu6oo. . Two hs were, completed with total costs of saoSoo & Sana,6uo respectively. They were sold on occoune ac a mrk up of 90% on cost. Required i)Compute Miller's predetermined manufacturing overhead rate for soms ii) State the journal entries necessary to record the above transactions in the general ournal a) For direct materials wsed ins August b) For indirect material issued to production in August c) For total manufacturing labour incurred in August d) To essign manafacturing labour to the appropriate accounts el For other manufacturing overhead incurresd 0) For manafacturing ovechead allocated for August g) To move the completed jobs into finished goods inventory h) To sell the two completed jobs on account Calculate the manufacturing overhead variance for Miller and state the journal entries necessary to dispose of the variance. iii) iv) What is balance on the Cost of Goods Sold account after the adjustment

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