1. Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account.

2. Prepare a schedule of cost of goods manufactured.

3. Compute cost of goods sold.

4. Compute gross profit.

Comprehensive Problem: Journal Entries; T-Accounts; Statements; Pricing Southworth Cor pany uses a job-order cost system and applies manufacturing overhead cost to jol on a basis of direct labour-hours. At the beginning of 19x8, the following estimat were made as a basis for computing a predetermined overhead rate for the yea manufacturing overhead cost, $250,000; direct labour-hours, 20,000 . The followir transactions took place during the year (all purchases and services were acquired account): a. Raw materials were purchased for use in production, $140,000. b. Raw materials requisitioned for use in production (all direct materials $148,000. c. Utility bills incurred in the factory, $21,000. d. Salaries and wages costs incurred: e. Maintenance costs incurred in the factory, $15,000. f. Advertising costs incurred, $120,000. g. Depreciation recorded for the year, $50,000 ( 90 percent relates to factory asset: and the remainder relates to selling and administrative assets). h. Rental cost incurred on buildings, $90,000 (80 percent of the space is occupie by the factory, and 20 percent is occupied by sales and administration). i. Miscellaneous selling and administrative costs incurred, $17,000. j. Manufacturing overhead cost was applied to jobs, ._? k. Cost of goods manufactured for the year, $590,000. 1. Sales for the year (all on account) totaled $1,000,000. These goods cost $600,00 to manufacture. The balances in the inventory accounts at the beginning of 19x8 were