1. ABC Co. uses a job-order cost system and applies overhead cost to jobs on the basis of direct materials used in production. The company's estimates were manufacturing overhead cost, $400,000; and direct materials to be used in production, $250,000. The company's inventory accounts at the beginning of the year were: Beginning Ending Raw Materials $ 10,000 $ 40,000 Work in Process 75,000 35,000 Finished Goods 130,000 200,000 The following actual costs were incurred during the year: Purchase of raw material (all direct) $ 255,000 Direct labor cost 45,000 Manufacturing overhead costs: Indirect labor 85,000 Utilities 90,000 Depreciation of equipment 130,000 Maintenance 45,000 Insurance 7,000 Rent, building 24,000 Required: 1. a) Compute the predetermined overhead rate for the year. b) Compute the amount of under-or overapplied overhead for the year. 2. Prepare a schedule of cost of goods manufactured for the year. Compute the cost of goods sold for the year. 4. Job 2c7 was started and completed during the year. What price would have been charged to the customer if the job required $4,500 in direct materials and $1,500 in direct labor cost and the company priced its jobs at 25% above cost to manufacture. 5. Direct materials made up $12,000 of the $35,000 ending Work in Process inventory balance. Supply the information missing below: Direct materials $ 12,000 Direct labor Manufacturing overhead Work in process inventory S 35,000 3