Manufacturing Cost Computations with T Accounts. The following information pertains to the cioverdale Company: LO1 Account Balances Finished Goods.

Work in Process.

Materials.

Accounts Payable.

Accrued Payroll.

Accounts Receivable Beginning Ending

$80,000

$ ?

20,000

?

15,000 23,000 7,000 5,000 11,000 14,000 45,000 65,000

(a) All sales were on account, with a markup equal to 28% of the sales price.

(b) The accounts payable account was used for materials purchases only.

(c) Factory overhead was applied at 150% of direct labor cost.

(d) Miscellaneous factory overhead cost totaled $60,000.

(e) Direct materials issued to production cost $80,000.

(0 Payment of accounts payable totaled $102,000.

(g) There was only one job in process at the end of the period, with charges to date of materials costing $10,000 and direct labor of $8,000.

(h) Collection of accounts receivable totaled $480,000.

(i) Cost of goods manufactured was $320,000.

(j) Payrolls totaling $172,000 were paid in cash.

Required: Using T accounts, compute:

(1) Materials purchased

(2) Cost of goods sold

(3) Finished goods ending inventory

(4) Work in process ending inventory

(5) Direct labor cost

(6) Applied factory overhead

(7) Over- or underapplied factory overhead

(8) Assuming the over- or underapplied overhead is relatively small, what is its disposition?