ANSWER 1-5 Wong, Singh & Campbell Inc. produces a wide range of specialized chemical products. The direct material, compound # 12XC, used in the production of all their products is highly sensitive and must be used in the exact in quantity and be of the highest quality. If there are defects in the product due to the slightest defect in the direct materials or mis measurement ofthe quantity of direct materials, the entire job must be scrapped. Therefore, most of the manufacturing overhead incurred is to inspect the quantity and quality of the direct materials before they are inputted into the manufacturing process. As a result, the company applies manufacturing overhead on the basis of the dollar value of direct materials used (not on the basis of raw materials purchased). To compute the predetermined manufacturing overhead rate the company has estimated the following: Manufacturing overhead $650,000 (consists mainly of quality control inspection of direct materials before they are inputted to the production process) Dollar value of direct materials to be used in production $500,000 The company's inventory accounts at the start of the year are as follows: Beginning Ending Raw materials (all direct) 80,000 20,000 Work in process 70,000 150,000 Finished goods 400,000 260,000 The following ACTUAL costs were incurred during the year: Purchases of raw materials (all direct) 510,000 Direct labour cos 90,000 Manufacturing Overhead . Indirect labour (quality inspectors) 625,000 . Property taxes factory 20,000 . Depreciation of factory equipment 25,000 . Maintenance of factory 30,000 . Insurance for factory 15,000 . Factory rent 45,000 Depreciation- delivery trucks 70,000 Sales salaries 200,000REQUIRED: 1. Compute the predetermined overhead rate for the year. 2. Job 215 was started and completed during the year. What price would have been charged to customers ifthe job required $8500 in direct materials and $2,700 in direct labour cost and the company priced its jobs at total manufacturing cost plus 40%? 3. Compute the amount of over or under applied overhead for the year. 4. Prepare a schedule of cost of goods sold for the year (Use the actual manufacturing overhead to complete your answer. In other words, do not include the over or under applied overhead in your cost of goods sold figure) 5. At the end of the year Job if 007 was incomplete and was valued at $150,000. To date, the money spent on direct materials was $48,000 and manufacturing overhead was applied (or charged) to Job # 007 using the predetermined overhead rate which you calculated. Supply the information missing below. WORK IN PROCESS - ENDING Direct materials $48,000 Direct labour Manufacturing overhead ( applied) Total WIP 3150,00