During the year, the following events occurred:
1. Drew purchased raw materials costing $86,000 on account.
2. Drew used $93,000 of raw materials in production. Of these, 70% were classified as direct materials and 30% as indirect materials. (Drew maintains a single Raw Materials Inventory account.)
3. Drew used 31,200 hours of direct labor. The company's average direct labor rate was $7.50 per hour (credit Wages Payable).
4. The company's only indirect labor cost was the salary of a security guard hired to watch the company's shop after hours. The guard's annual salary was $25,000 (credit Wages Payable).
5. Other manufacturing overhead costs the company incurred on account totaled $70,000.
6. Drew applied $130,000 in manufacturing overhead.
7. The company completed production of goods costing $326,000.
8. The company's Cost of Goods Sold balance was $303,750 before adjusting for over- or under applied overhead.
9. Sales revenue was $425,000 (all sales were made on account).
10. Drew collected $450,000 from customers.
11. The company paid accounts payable of $100,000.
12. At year-end, all wages earned during the year had been paid.
(a) Calculate under- or over applied overhead for the year. (Round answer to 0 decimal places, e.g. 52,555.)
Overhead
Under applied Over applied by $
(b) Assuming that Drew closes under- or over applied overhead to Cost of Goods Sold, calculate the cost of goods sold for the year.
Adjusted cost of goods sold $
(c) Assuming that Drew prorates under- or over applied overhead to the appropriate accounts, calculate the adjusted Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold balances for the year. (Round % of total and final answers to 2 decimal places, e.g. 15.25% or 58,971.25.)
Adjusted Balance
Work In Process $
Finished Goods $
Drew Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each team's uniform is unique in color and design, Drew uses a job order costing system. On January 1, the T-accounts for some of Drew's primary balance sheet accounts were as follows: Raw Materials Inventory: Beg 15,000
Work IN process Inventory: Beg. 31,000 65,100 (credit of 326,000) 234,000 130,000 Bal. 134,100
Accounts Rec. Beg: 56,000
Accounts Pay: Beg: 42,000
Finished Goods: Beg: 22,000 326000 (credit of 303750) Bal. 44,250
Cost of Goods Sold: Beg 0 303,750 Bal. 303,750
Cash: Beg 32,000
Calculate under-or overapplied overhead for the year: ? Assuming that Drew closes under-or overapplied overhead to Cost of Goods Sold for the year: Adjusted cost of goods sold? Assuming that Drew prorates under- or overapplied overhead to the appropriate Work in Process Invetory, Finished Goods Inventory, and Cost of Goods Sold: Adjusted Balance: Work in Process: ? Finished Goods: ? Cost of Goods Sold?

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Raw Materials Inventory Work in Process Inventory Beg. 15,000 Beg. 31,000 65,100 326,000 234,000 130,000 134,100 Accounts Payable Accounts Receivable Beg. 56,000 Beg. 42,000 Finished Goods Cost of Goods Sold 22,000 Beg. Beg. 326,000 303,750 303,750 44,250 303,750 Cash Beg. 32,000