1. Charlotte Inc uses a job-order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $75,000 for the year; direct labor was estimated to total $150,000.

1/1 12/31

Raw Materials $10,000 $13,000

Work in Process $ 22,000 $19,000

Finished Goods $34,000 $41,000

The following transactions have occurred during the year.

Raw Materials purchses $100,000

Direct Materials $91,000

Direct Labor $145,000

Indirect Materials $6,000

Indirect Labor $15,000

Factory Equipment deprciation $24,000

Factory rent $18,000

Factory Utilites $7,500

Other factory costs $6,500

a. Calculate the predetermined overhead rate

b. Calculate cost of goods manufactured

d. Calculate cost of goods sold