atement, Applied and Actual FOH Both Any of Ex. 5-2 applies factory overhead at the rate of 50% of and the yearly balance of under or over applied factory overhead is closed to cost of goods sold. Assume that other data are the same as given in Ex. 5-2. Required: Prepare income statement for the year ended December 31. Check figures: C.G.S. at normal Rs.262,500, Underapplied FOH Rs.2,500, N.P. Rs.270,500 0,500 2. ---- ------ ------- 5-4. Adjustment for Factory Overhead Variance. The following information has been extracted from the books and records of Rawal Manufacturing Company: Materials purchased Total payroll Direct labour Rs. 240,000 Rs. 100,000 Factory office salaries Rs. 84,000 Heat and light cost Rs. 10,000 Power cost Rs. 5,000 Insurance (fire and other) Rs. 3,000 Rs. Indirect materials purchased and used 1,000 Rs. 8,000 Superintendence Rs. 1,000 Depreciation of building, Rs. 1,000 Depreciation of equipment 3,000 Factory taxes Rs. 2,000 Employer's provident fund contribution (94% factory, 4% selling and 2% administrative) 10,000 Tool expenses 1,100 Rs. Miscellaneous factory overhead costs Predetermined overhead rate: 50% of direct labour cost January 1 December 31 The beginning and ending inventories were: Rs. 24,000 Rs. 30,000 Materials 12,000 Rs. 8,000 Work in process 36,000 Rs. Finished goods 22ZZZZZZ Rs. ----- Rs. Rs. Rs. 600 45,700 Rs. Rs. 42,000 Required: From the foregoing information prepare the cost of goods manufactured and sold statement. On the statement the cost at normal should be indicated with adjustment of over or under applied overhead. Check figures. Inderapplied F.O.H. Rs. 3,700, C.G.S. at actual Rs. 361,100