1. What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)?

2. If overhead is applied to production on the basis of direct materials cost, what rate was in effect during the year?

3. Was manufacturing overhead underapplied or overapplied? By how much?

4. Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $33,500 of this balance is direct materials cost, how much of it is direct labour cost? Manufacturing overhead cost?

Selected ledger accounts for Realm Company are given below for the just-completed year: Raw Materials 45,000 Credits 495,000 90,000 Bal. 1/1 Debits Bal. 31/12 Debits Bal. 1/1 Direct materials Direct labour Overhead Bal. 31/12 Debits. Bal. 1/1 Debits Bal. 31/12 Manufacturing Overhead 437,000 Credits Debits Factory Wages Payable 216,500 Bal. 1/1 Credits Work in Process 92,500 Credits 350,000 140,000 455,000 Bal. 31/12 Finished Goods 67,000 Credit ? 175,000 Cost of Goods Sold ? ? 25,000 212,500 21,000 936,100