8 10 points Mooresville Corporation manufactures reproductions of eighteenth-century, classical-style furniture. It uses a job costing system that applies factory overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $1,359,000, and management budgeted 90,000 direct labor hours. Mooresville had no Materials, Work-in-process, or Finished Goods Inventory at the beginning of August. These transactions were recorded during August: a. Purchased 5,600 square feet of oak on account at $26 per square foot. b. Purchased 110 gallons of glue on account at $36 per gallon (indirect material). c. Requisitioned 3,920 square feet of oak and 37 gallons of glue for production. d. Incurred and paid payroll costs of $200,500. Of this amount, $52,000 were indirect labor costs; direct labor personnel earned $22 per hour. e. Paid factory utility bill, $16,250 in cash. f. August's insurance cost for the manufacturing property and equipment was $3,800. The premium had been paid in March. g. Incurred $8,890 depreciation on manufacturing equipment for August. h. Recorded $2,550 depreciation on an administrative asset. i. Paid advertising expenses in cash, $5,770. j. Incurred and paid other factory overhead costs, $14,100. k. Incurred miscellaneous selling and administrative expenses, $13,700. I. Applied factory overhead to production on the basis of direct labor hours. m. Produced completed goods costing $149,000 during the month. n. Sales on account in August were $138,600. The Cost of Goods Sold was $115,000. Required: 1. Compute the firm's predetermined factory overhead rate for the year. 2. Prepare journal entries to record the August events. 3. Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on August 31. 4. Prepare a schedule of Cost of Goods Manufactured and Cost of Goods Sold. 5. Compute the amount of overapplied or underapplied overhead that should be prorated to Work-in-process, Finished Goods and Cost of Goods Sold. 6. Prepare the income statement for August. Req 1 Reg 2 Reg 3 Req 4 COGM Reg 4 COGS Req 5 Req 6 Prepare a schedule of Cost of Goods Manufactured. 0 101,920 148,500 Mooresville Corporation Statement of Cost of Goods Manufactured For the Month Ended August 31 Direct materials used Materials inventory, Beginning $ Direct materials purchases 145,600 Total direct materials available 145,600 Less: Direct materials inventory, Ending 43,680 Direct materials used Direct labor-wages Factory overhead applied Total manufacturing costs incurred during year Add: Work-in-process inventory, Beginning Total manufacturing costs to account for Less: Work-in-process inventory, Ending Cost of goods manufactured Actual overhead Indirect materials used $ 3,960 Indirect laborwages 5,200 Factory utilities 16,250 Factory insurance 3,800 Depreciation expense-plant 8,890 Other factory overhead 101,925 352,345 0 352,345 OOOOOO Total factory overhead Total applied overhead Overapplied overhead OL $ 5,553 Req 1 Reg 2 Req 3 Req 4 COGM Req 4 COGS Req 5 Req 6 Prepare a schedule of Cost of Goods Sold. Mooresville Corporation Schedule of Cost of Goods Sold $ 0 115,000 For the Month Ended August 31 Finished goods inventory, beginning Cost of goods manufactured Total goods available for sale Finished goods inventory, ending Cost of goods sold 149,000 115,000 Reg 1 Reg 2 Reg 3 Reg 4 COGM Req 4 COGS Req 5 Reg 6 Compute the amount of overapplied or underapplied overhead that should be prorated to Work-in-Proc and Cost of Goods Sold. (Round both the Relative Amount and the Share of overapplied overhead to tw Relative amount Share of overapplied overhead Balance % Ending Work-in-Process Ending Finished Goods Cost of Goods Sold % % Total 0 0.00 % $ 0.00 Reg 1 Reg 2 Req 3 Req 4 COGM Req 4 COGS Req 5 Reg 6 Prepare the income statement for August. Mooresville Corporation Income Statement For the Month Ended August 31 Sales revenue $ 138,600 115,000 X $ 23,600 $ 14,100 x Cost of goods sold Gross margin Selling and administrative Advertising expense Total selling & administrative expenses Operating income 5,770