2 Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). In computing a predetermined overhead rate at the beginning of the year, the company's estimates were as follows: manufacturing overhead cost, $1,120,000; direct materials to be used in production, $640,000. The company's inventory accounts at the beginning and end of the year were as follows: Beginning Ending 25 Raw Materials $ 73,900 $ 21, 400 points Work in Process 77,000 164,090 Finished Goods 414, 000 274,000 The following actual costs were incurred during the year. Purchase of raw materials (all direct) $496, 000 Direct labour cost 97, 000 Manufacturing overhead costs: Indirect labour 184, 000 Property taxes 49, 400 Depreciation of equipment 274,000 Maintenance 96, 400 Insurance 8, 400 Rent, building 194, 000 Required: 1-a. Compute the predetermined overhead rate for the year. Predetermined overhead rate1-b. Compute the amount of under- or overapplied overhead for the year. overhead is2. Prepare a schedule of cost of goods manufactured for the year. 25 points Cost of goods manufactured 3. Compute the cost of goods sold for the year. {Do not Include any under or overappllecl overhead in your 005'! of goods sold gure.) :| 4. Job 215 was started and completed during the year. What price would have been charged to the customer if the job required 25 $9,900 in direct materials and $4,100 in direct labour cost and the company priced its jobs at 20% above cost to manufacture? polnts 5. Direct materials. made up $25,400 ofthe $164,000 ending workinprocess inventory balance. Compute the missing amounts. Direct materials Direct labour Manufacturing ovemead 55 164000 Workinprocess inventory