Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $65,000 and its total manufacturing overhead cost to be $91,000. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required: 1. Calculate the predetermined overhead rate.

2. Fill in the missing values in the T-accounts. Raw Materials Inventory 15.000 Beginning Balance Purchases Ending Balance Work in Process Inventory 30,000 70,000 95,000 30.000 Beginning Balance Direct Materials Direct Labor Applied Overhead Ending Balance S 50,000 20,000 Finished Goods Inventory Beginning Balance 40,000 Cost of Goods Completed Ending Balance 50,000 Cost of Goods Sold Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold Sales Revenue Manufacturing Overhead 300,000 Indirect Materials 10,000 Applied Overhead Indirect Labor Factory Depreciation Factory Rent Factory Utilities Other Factory Costs Actual Overhead 15,000 13,000 7,000 3,000 10.000 58,000 Selling, General, and Administrative Expenses Adm. Salaries 28,000 Office Depreciation 20,000 Advertising 15,000 Ending Balance 63.000 3. Compute over- or underapplied overhead. Manufacturing Overhead 4. Prepare a statement of cost of goods manufactured and sold including the adjustment for over- or underapplied overhead. DOBSON MANUFACTURING COMPANY Cost of Goods Manufactured and Sold Report Direct Materials Used in Production Total Current Manufacturing Costs Total Work in Process Cost of Goods Manufactured Cost of Goods Available for Sale Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold 5. Prepare a brief income statement for the company DOBSON MANUFACTURING COMPANY Income Statement Net Income from Operations