**Cost Accounting at O’Leary Corporation**O’Leary Corporation specializes in manufacturing custom portable structures for construction sites. The company operates on a personalized order basis and employs a normal job costing system for its operations. The direct labor at O’Leary is compensated at $26 per hour, but payments are made only for active job hours. Manufacturing overhead is allocated based on direct labor-hours.### Manufacturing Overhead Costs (Year 1 & Year 2):- **Direct labor-hours worked:** - Year 1: 68,800 - Year 2: 55,800- **Manufacturing overhead costs incurred:** - Indirect labor: - Year 1: $2,832,000 - Year 2: $2,232,000 - Employee benefits: - Year 1: $1,832,000 - Year 2: $837,000 - Supplies: - Year 1: $688,000 - Year 2: $508,000 - Power: - Year 1: $645,000 - Year 2: $540,000 - Heat and light: - Both Years: $141,000 - Supervision: - Year 1: $781,470 - Year 2: $661,650 - Depreciation: - Both Years: $2,036,500 - Property taxes and insurance: - Year 1: $787,430 - Year 2: $885,250- **Total manufacturing overhead costs:** - Year 1: $8,944,000 - Year 2: $7,812,000### Jobs Overview (At Beginning of Year 3):O’Leary has two key projects:- **Job MC-270** was finalized on December 27, Year 2.- **Job MC-275** is ongoing, scheduled to ship on January 7, Year 3.**Costs for Year 2:**- **Job MC-270:** - Direct material costs: $271,800 - Direct labor-hours: 2,590 hours- **Job MC-275:** - Direct material costs: $496,800 - Direct labor-hours: Certainly! Here’s a transcription suitable for an educational website:---### Required:a. What was the amount in the beginning Finished Goods and beginning Work-In-Process accounts for year 3?b. O'Leary incurred direct materials costs of $58,800 and used an additional 480 hours in year 3 to complete Job MC-275. What was the final (total) cost charged to Job MC-275?c. What was over- or underapplied overhead for year 3?d. O'Leary prorates any over- or underapplied overhead to Cost of Goods Sold, Finished Goods Inventory, and Work-In-Process Inventory. Prepare the journal entry to prorate the over- or underapplied overhead.---This transcription includes questions focused on accounting, specifically relating to the calculation and allocation of overhead costs and inventory accounting for a specific job in a manufacturing context.

Name: **Cost Accounting at O’Leary Corporation**O’Leary Corporation special
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Description: **Cost Accounting at O’Leary Corporation**O’Leary Corporation specializes in manufacturing custom portable structures for construction sites. The company operates on a personalized order basis and employs a normal job costing system for its operatio

"As per the policy of our company, we are allowed to answer only the first three sub-parts in case of a multipart question. Therefore, we are providing you with the answers to the first three Sub-parts of the question posted by you. If you need the answer for the remaining sub-parts, then please repost the question again for the remaining unanswered sub-parts." This question is related to cost accounting. In the given question we are provided with the data of O'Leary Corporation which is indulged in the special purpose portable structures. With the given information in the question we are required to calculate opening balance of Finished goods and Work-in-progress for the year 3. The required calculation are done in the following steps as under:(a) Calculation of Beginning Finished goods and Work-in-progress for year 3 --->Beginning WIP Particulars Amount in $ Direct Materials 496800 Add: Direct Labour (3290 X 26) 85540 Add: Manufacturing Overhead (3290 X 140) (Note-1) 460600 WIP in the Beginning 1042940 Note-1: Actual overhead rate of Year 2 = 7812000 / 55800 = $140 --->Beginning Finished Goods Particulars Amount in $ Direct Materials 271800 Add: Direct Labour (2590 X 26) 67340 Add: Manufacturing Overhead (2590 X 140) 362600 Finished Goods in the Beginning 701740 Therefore, Beginning WIP = $1042940 Beginning Finished Goods = $701740(b) Calculation of Final cost charged to Job MC-275 Particulars Amount in $ Beginning WIP 1042940 Add: Direct Materials 58800 Add: Direct Labour (480 X 26) 12480 Add: Manufacturing Overheads (480 X 140) 67200 Final cost charged to Job MC-275 1181420 Therefore, Final cost charged to Job MC-275 is $1181420. (c) Over/ under applied overhead Particulars Amount in $ Actual manufacturing overhead 9552000 Overhead applied during production (140 X 75800) 10612000 Overapplied overhead 1060000 Therefore, Overhead is overapplied by an amount of $1060000.

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2 O'Leary Corporation manufactures special purpose portable structures (huts, mobile offices, and so on) for use at constructilon sites. It only bulds to order (each unit Is bullt to customer specifications). O'Leary uses a normal job costing system. Direct labor at O'Leary Is pald $26 per hour, but the employees are not pald 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. Skipped Year 1 Year 2 Direct labor-hours worked 68, 8ee 55, 800 Manufacturing overhead costs incurred Indirect labor Employee benefits Supplies Рower $2,832,000 1,832, 00 688,00e 645,000 $2,232,000 837, eee 558, 000 540, 000 Heat and light Supervision Depreciation 141,600 141,600 781,470 661,650 2,036,50e 787,430 2,036, 500 Property taxes and insurance se5, 250 Total manufacturing overhead costs $8,944,00e $7,812,000 At the beginning of year 3, O'Leary has two Jobs, which have not yet been delivered 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 prevlous year's actual overhead rate. Data on direct materlal costs and direct labor- hours for these Jobs In year 2 follow. Job MC-270 Job MC-275 Direct material costs Direct labor-hours $496, 80e 3, 290 hours $271,8ee 2,590 hours During year 3, O'Leary Incurred the following direct materlal costs and direct labor-hours for all jobs worked In year 3, Including the completion of Job MC-275. $11,841, 800 75,800 $ 9,552, e0e Direct material costs Direct labor-hours Actual manufacturing overhead At the end of year 3, there were four Jobs that had not yet shlpped. Data on these Jobs follow. MC- 389 MC -398 MC-397 MC - 399 Direct materials $45, e00 1,758 hours $68, 800 2,790 hours $105, 300 6,190 hours $30,780 1,390 hours In progress Direct labor-hours Job status Finished Finished In progress