10:45 Done MAY2021 - Job Order Costing Ho... QUESTION 2 (25 marks) Sherwood Shoes Company operates a job-order cost system to accumulate costs in its manufacturing plant. For the year ended June 30, 2011, the company's had the following beginning and ending inventories: July 1, 2010 June 30. 2011 $ 24,000 $ Raw materials 21,000 Work-in-process 41,000 46,000 Finished goods 48,000 39,000 The company applies overhead cost to jobs on a basis of direct labor costs. In computing an overhead rate for 2011, management has budgeted the following costs for 2011: Manufacturing overhead cost. $ 126,000 Direct labor cost 84,000 During the year, the following actual costs were incurred: Factory utilities. Direct labor cost Purchase of raw materials, Depreciation of factory equipment Indirect labor Property taxes of factory building, Maintenance of equipment Rent of office building Bad debt expense Administrative salaries Insurance of factory building Interest expense. $ 33,500 80,000 7,000 18,000 42,000 9,000 11,000 36,000 7,000 156,800 12,000 3,360 cost) Required: a) Compute the predetermined overhead rate (POHR) for 2011. (2 marks) b) Compute the amount of under-or over-applied overhead for the year. (2 marks) c) Prepare the schedule of costs of goods manufactured for the year. (Use the applied manufacturing overhead (12 marks) d) Prepare the schedule of costs of goods sold for the year. (5 marks) e) Journalize the disposal of the under- or over-applied overhead for the year to Cost of goods sold (2 marks) f) Job #137 is one of the many jobs started and completed during the year. What total price (biding price) would have been charged to the customer if the job required $3,200 in materials and $4,200 in direct labor, and the company priced its jobs at 40 percent above cost of manufacturing? (Hint: use the applied overhead cost) (2 marks) 7