7 0 0 0 0 To record the completion of Job #462 8 0 0 0 0 9 To record sales To record the cost of sales " 0 0 0 0 c. What were the cost and selling price per unit of Job #462? What was the cost per unit of the raw material? Note: Round your answers to two decimal places. Cost per unit $ 0 Selling price per unit $ Cost per unit of raw material $ 0 0 d. Assume that enough pine had been issued in July for 20,000 quilt racks. The raw material inventory manager is Power's friend, who conveniently "forgot" to trace the teak's cost specifically to Job #462. What would the effect of this "error" be on the raw material cost, total cost, and selling price for each unit in Job #462? Note: Round your answers to two decimal places. Revised raw material cost per unit $ 0 Revised total cost per unit $ 0 Revised selling price per unit $ 0 b. Prepare journal entries for the July transactions. Note: Round amounts to the nearest whole dollar. Note: List any multiple debits or any multiple credits in alphabetical order by account name. Account 1 Raw Material Inventory Accounts Payable Debit Credit 346000 0 0 346000 To record raw materials purchased on account 2 Work in Process Inventory-Job 462 34000 0 Raw Material Inventory 0 34000 0 0 To record the direct materials issued 3 Raw Material Inventory 26400 0 Cash 0 26400 0 0 To record the labor costs in Department 1 4 Overhead Control 37200 0 Accounts Payable 0 37200 0 0 To record overhead applied in Department 1 5 Overhead Control Cash 25740 0 0 25740 0 0 To record the labor costs in Department 2 6 Overhead Control 37200 0 Accounts Payable 0 37200 0 0 To record overhead applied in Department 2

Cost accumulation in two departments
Country Products manufactures quilt racks. Pine stock is introduced in Department 1, where the raw material is cut and assembled. In Department 2, completed racks are stained and packaged for shipment. Department 1 applies overhead on the basis of machine hours; Department 2 applies overhead on the basis of direct labor hours. The company’s predetermined overhead rates were computed using the following information:

Sue Power contacted Country Products to produce 500 quilt racks as a special order. Power wanted the racks made from teak and to be made larger than the company’s normal racks. Country Products designated Power’s order as Job #462.
During July, Country Products purchased $346,000 of raw material on account, of which $19,000 was teak. Requistions were issued for $340,000 of raw material, including all the teak. There were 285 direct labor hours worked (at a rate of $11 per DLH) and 2,400 machine hours recorded in Department 1; of these hours, 25 DLHs and 320 MHs were on Job#462. Department 2 had 1,430 DLHs (at a rate of $18 per DLH) and 180 MHs; of these, 158 DLHs and 20 MHs were worked on Job #462. Assume that all wages are paid in cash.
Job #462 was completed on July 28 and shipped to Power. She was billed cost plus 20 percent.

a. What are the predetermined overhead rates for Departments 1 and 2?