Case 1 ACC 331 Audrey Taylor The Cycle More Company manufactures high-end bicycles. The controller for the company, Ima Sewsique, spent much of the past quarter at home due to a lingering illness. As a result, the company records are incomplete. The records that exist are presented below: Beginning Balances from 1/1/2021 Raw Materials Inventory Work in Process ? Finished Goods Inventory $5,250 $7,500 Ending Balances from 12/31/2021 Raw Materials Inventory Work in Process $750 $1,025 Finished Goods Inventory ? Additional Information Raw Materials Purchased $98,000 Cost of Good's Sold (unadjusted) $435,000 Raw Materials Used in Production $104,250 Prime Costs $158,000 Overhead Rate based on Direct labor dollars 500% Required: 1. Prepare T-accounts for all of the Manufacturing Inventory Accounts and for Cost of Goods Sold. 2. Determine conversion costs for the period and the total manufacturing costs added to Work-in-Process. 3. List any direct costs and explain how your determination was made. 4. (CLASS DISCUSSION - BE READY TO ANSWER IN CLASS) Consider the composition ? mar. facturing overhead. List categories of costs that would be considered over cad. Labe the items listed as either a variable cost, a fixed cost, or a mixed cost. 5. (CLASS DISCUSSION - BE READY TO ANSWER IN CLASS) The Owners of Cycle More have chosen to apply overhead based on direct labor dollars. Given the composition of yo!" list of overhead items in your answer to question 3, when would direct labor be an accu ate predictor of the cost of overhead