The Pendley Company uses a normal job order cost system. Manufacturing overhead is applied at \(\$ 2\) per direct labor hour. The results of operation for the current period are:

{Required:}
(1) Determine the amount of under- or overapplied overhead for the period.
(2) Compute the ending inventory in work-in-process.

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Direct labor cost (100,000 hours @ $6.00) .... $600,000 Indirect labor.... Direct materials used Indirect supplies used Utilities used in factory.. Miscellaneous overhead Cost of goods sold. Finished goods (ending). 50,000 400,000 40,000 100,000 20,000 800,000 100,000 'The company has no beginning inventory in work-in-process or finished goods.