\begin{tabular}{|c|c|c|c|c|c|} \hline 7 & g. & Factory overhead & 0 & 8,825 & \\ \hline & & Accumulated depreciation & 0 & & 8,825 \\ \hline \multirow[t]{2}{*}{8} & h. & Selling \& administrative expense & ( & 2,525 & \\ \hline & & Accumulated depreciation & ( & & 2,525 \\ \hline \multirow[t]{2}{*}{9} & i. & Advertising expense & 0 & 5,725 & \\ \hline & & Cash & 0 & & 5,725 \\ \hline \multirow[t]{3}{*}{10} & j. & Factory overhead & 0 & 14,000 & \\ \hline & & Cash & 0 & & 14,000 \\ \hline & & & & b & \\ \hline \multirow[t]{2}{*}{11} & k. & Selling \& administrative expense & 0 & 13,625 & \\ \hline & & Cash & 0 & & 13,625 \\ \hline \multirow[t]{2}{*}{12} & I. & Work-in-process inventory & 0 & & \\ \hline & & Factory overhead & 0 & & \\ \hline \multirow[t]{2}{*}{13} & m. & Finished goods inventory & 0 & 148,500 & \\ \hline & & Work-in-process inventory & 0 & & 148,500 \\ \hline \multirow[t]{2}{*}{14} & n1. & Accounts receivable & 0 & 138,000 & \\ \hline & & Sales revenue & 0 & & 138,000 \\ \hline \multirow[t]{2}{*}{15} & n2. & Cost of goods sold & 0 & 114,500 & \\ \hline & & Finished goods inventory & 0 & & 114,5000 \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline \multicolumn{3}{|c|}{ Mooresville Corporation } \\ \hline \multicolumn{2}{|c|}{ Income Statement } \\ \hline For the Month Ended August 31 \\ \hline Sales revenue \\ \hline Cost of goods sold \\ \hline Gross margin & \\ \hline Selling and administrative & \\ \hline Advertising expense & \\ \hline Total selling \& administrative expenses & \\ \hline Operating income & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ Mooresville Corporation } \\ \hline \multicolumn{1}{|c|}{ For the Month Ended August 31 } \\ \hline Direct materials used \\ \hline Direct materials purchases \\ \hline Materials inventory, Beginning \\ \hline Total direct materials available \\ \hline Less: Direct materials inventory, Ending \\ \hline Direct materials used \\ \hline Direct labor-wages \\ \hline \\ \hline Total manufacturing costs incurred during year \\ \hline Add: Work-in-process inventory, Beginning \\ \hline Total manufacturing costs to account for \\ \hline Less: Work-in-process inventory, Ending \\ \hline Cost of goods manufactured & \\ \hline Actual overhead & \\ \hline Factory insurance & \\ \hline Indirect labor-wages & \\ \hline Indirect materials used & \\ \hline Other factory overhead & \\ \hline Depreciation expense-plant & \\ \hline & \\ \hline Total factory overhead & \\ \hline Total applied overhead & \\ \hline Overapplied overhead & \\ \hline \end{tabular} Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on Augu Predetermined overhead rate $15.00 per direct labor-hour Mooresville Corporation Schedule of Cost of Goods Sold 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 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 $1,342,500, and management budgeted 89,500 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 5,500 square feet of oak on account at $26 per square foot. b. Purchased 100 gallons of glue on account at $36 per gallon (indirect material). c. Requisitioned 3,850 square feet of oak and 36 gallons of glue for production. d. Incurred and paid payroll costs of $198,400. Of this amount, $51,000 were indirect labor costs; direct labor personnel earned $22 perhour. e. Paid factory utility bill, $16,080 in cash. f. August's insurance cost for the manufacturing property and equipment was $3,750. The premium had been paid in March. g. Incurred $8,825 depreciation on manufacturing equipment for August. h. Recorded $2,525 depreciation on an administrative asset. i. Paid advertising expenses in cash, $5,725. j. Incurred and paid other factory overhead costs, $14,000. k. Incurred miscellaneous selling and administrative expenses, $13,625. 1. Applied factory overhead to production on the basis of direct labor hours. m. Produced completed goods costing $148,500 during the month. n. Sales on account in August were $138,000. The Cost of Goods Sold was $114,500. 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