Cost Accounting Book: Cornerstone 3nd edtion by HANSEN , DON R

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the custom guitar company uses a predetermined overhead rate of $5 per machine hour to apply overhead. During the year, 32,500 machine hours were worked. Actual manufacturing overhead cost for the year was $187,500. company records showed the following account balances at the end of the year:

Materails $22,500

Work in Process 37,500

Finished goods 50,000

Cost of goods sold 112,500

Requried:

a. Determine the amount of underapplied or overapplied overhead

b. Assuming the amount of underapplied or overapplied overhead is material, determine unapplied or overapplied overhead that would be allocated to the following accounts if the allocation is made using ending account balances:

Work in process

Finished Goods

Cost of Goods Sold

c. Determine the balance of Cost of Goods Sold if unapplied or overapplied overhead is immaterial.

thank you in advance for you help.