Confirming PagesSAMPSON COMPANYGeneral Ledger AccountsRaw Materials Inventory$1/1$ Balance $10,000$Manufacturing OverheadWork in Process Inventory $($WIP$)1/1$ Balance $15,000$Finished Goods Inventory$1/1$ Balance $30,000$Individual Job Cost Sheets $($subsidiary ledgers to WIP$)$Job $102$ Job $103$Beg. Balance $15,0001$ Direct Materials$1$ Direct Labor$1$ Applied OHTotal Mfg$.$ CostCost of Goods SoldSales Revenue Selling, General, and Administrative ExpensesCash and Other Assets$1/1$ Balance $100,000$Payables and Other Liabilities$85,0001/1$ BalanceStockholders$$ Equity$70,0001/1$ Balancewhi$25516\_$ch$02\_038-097.$indd $95$whi$25516\_$ch$02\_038-097.$indd $9518/09/1212$:$09$ PM$18/09/1212$:$09$ PM

Confirming PagesDuring January, the company had the following transactions:$($a$)$ Purchased $$10,000$ worth of raw materials on account.$($b$)$ Issued the following materials into production:Item Cost ExplanationDirect materials $$7,000$ Job $102,$ $$2,000$; Job $103,$ $$5,000$Indirect materials $2,000$ Used on both jobsTotal materials issued $$9,000($c$)$ Recorded salaries and wages payable as follows:Item Cost ExplanationDirect labor $$10,000$ Job $102,$ $$6,000$; Job $103,$ $$4,000$Indirect labor $4,000$ For factory supervisionSalaries $5,000$ For administrative staffTotal payroll cost $$19,000($d$)$ Applied overhead to jobs based on the number of direct labor hours required:Job Number Direct Labor HoursJob $102300$ hoursJob $103200$ hoursTotal $500$ hours$($e$)$ Recorded the following actual manufacturing costs:Item Cost ExplanationRent $ $6,000$ Paid factory rent in cashDepreciation $5,000$ Factory equipmentInsurance $3,000$ Had one month of factory insurance policy expireUtilities $2,000$ Received factory utility bill but did not pay itTotal cost $$16,000($f$)$ Recorded the following general and administrative costs:Item Cost ExplanationAdvertising $$2,000$ Advertising paid in cashDepreciation $3,000$ Office equipmentOther expenses $1,000$ Micellaneous expenses incurred but not paidTotal cost $$6,000($g$)$ Sold Job $101,$ which is recorded in Finished Goods Inventory at a cost of $$30,000,$ for $$55,000.($h$)$ Completed Job $102$ but did not sell it; Job $103$ is still in process at year$-$end.whi$25516\_$ch$02\_038-097.$indd $96$whi$25516\_$ch$02\_038-097.$indd $9618/09/1212$:$09$ PM$18/09/1212$:$09$ PM

Confirming PagesRequired:$1.$ Compute and interpret the predetermined overhead rate$\mathrm{.}2.$ How much overhead would be applied to jobs during the period?$3.$ Compute the total cost of Jobs $102$ and $103$ at the end of the period. Where would the costof each of these jobs appear on the year$-$end balance sheet?$4.$ Prepare journal entries to record the January transactions and post the entries to the generalledger T$-$accounts given earlier in the problem$\mathrm{.}5.$ Calculate the amount of over$-$ or underapplied overhead$\mathrm{.}6.$ Prepare the journal entry to dispose of the overhead balance assuming that it had been a year$-$end balance instead of a month$-$end balance. Post the effect to the general ledger T$-$accounts$\mathrm{.}7.$ Prepare a statement of cost of goods manufactured report including the adjustment for over$-$or underapplied overhead$\mathrm{.}8.$ Prepare a brief income statement for Sampson Company.whi$25516\_$ch$02\_038-097.$indd $97$whi$25516\_$ch$02\_038-097.$indd $9718/09/1212$:$10$ PM$18/09/1212$:$10$ PMPlease note that you do not need to include the T$-$accounts$/$general ledger that areprovided. The questions above $(4$ and $6)$ only ask for the journal entries. You can use theT$-$accounts for your work if you wish