Allenton Company is a manufacturing firm that uses job-order costing. At the beginning of the year, the company's inventory balances were as follows: Raw materials: $26,000 Work in process: $47,000 Finished goods: $133.000 The company applies overhead to jobs using a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated that it would work 31,000 machine hours and incur S248,000 in manufacturing overhead cost. The following transactions were recorded for the year: a.) Raw materials purchased: S411,000. b.) Raw materials requisitioned for use in production: S409,000 (8388,000 direct and S21,000 indirect). c.) The following employee costs were incurred: Direct labour: S145,000 Indirect labour: $61,000 Administrative salaries: $190,000 d.) Selling costs: 148,000. e.) Factory utility costs: $12,000. f) Depreciation for the year: $121,000, of which $114,000 is related to factory operations and $7,000 is related to selling and administrative activities. g.) Manufacturing overhead was applied to jobs. The actual level of activity for the year was 29,000 machine hours. h.) Cost of goods manufactured for the year: 783,000. 1.) Sales for the year: $1,107.000; the costs on the job cost sheets of the goods that were sold: $768,000. 1. The balance in the Manufacturing Overhead account was closed out to Cost of Goods Sold. Required: a. Prepare a schedule of cost of goods manufactured in good form. b. Was the manufacturing overhead under- or overapplied? By c. Prepare an income statement for the year in good form. The company closes out any under-or overapplied overhead to Cost of Goods Sold how much? Savallas Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of computer-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year: Computer hours 85,000 Manufacturing overhead cost S1, 530,000 During the year, a severe economic recession resulted in cutting back production and a buildup of inventory in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year: 60,000 $ 1,350,000 Computer hours Manufacturing overhead cost Inventories at the end Raw materials Work in progress Finished goods Cost of goods sold $400,000 S160,000 $1.040.000 $ 2,800,000 Required: 1. Compute the company's predetermined overhead rate for the year. 2. Compute the underapplied or overapplied overhead for the year. 3. Assume that the company closes any underapplied or overapplied overhead directly to Cost of Goods Sold. Prepare the appropriate entry. 4. Assume that the company allocates any overapplied overhead to Work in Process, Finished Goods, and Cost of Goods Sold on the basis of the amount of overhead applied during the year that remains in each account at the end of the year. These amounts are $43,200 for Work in Process, $280,800 for Finished Goods, and $756,000 for Cost of Goods Sold. Underapplied overhead is charged directly to Cost of Goods Sold. Prepare the journal entry to show the disposal of under/overapplied overhead. Savallas Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of computer-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year: Computer hours 85,000 Manufacturing overhead cost S1, 530,000 During the year, a severe economic recession resulted in cutting back production and a buildup of inventory in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year: Computer hours 60,000 Manufacturing overhead cost $ 1,350,000 Inventories at the end Raw materials $400,000 Work in progress S160,000 Finished goods $1.040.000 Cost of goods sold $ 2,800,000 Required: 1. Compute the company's predetermined overhead rate for the year. 2. Compute the underapplied or overapplied overhead for the year. 3. Assume that the company closes any underapplied or overapplied overhead directly to Cost of Goods Sold. Prepare the appropriate entry. 4. Assume that the company allocates any overapplied overhead to Work in Process, Finished Goods, and Cost of Goods Sold on the basis of the amount of overhead applied during the year that remains in each account at the end of the year. These amounts are $43,200 for Work in Process, $280,800 for Finished Goods, and $756,000 for Cost of Goods Sold. Underapplied overhead is charged directly to Cost of Goods Sold. Prepare the journal entry to show the disposal of under/overapplied overhead