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 $59,400 and its total manufacturing overhead cost to be $95,040.

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.

3. Compute over- or underapplied overhead.

4.Demonstrate how toprepare a statement of cost of goods manufactured and sold including the adjustment for over- or underapplied overhead.

5.Demonstrate how to prepare abrief income statement for the company.

T-Charts for part 2:

Raw Materials Inventory

Beginning Balance 13400 ?

Purchases 94200

Ending Balance 29300

Work In Process Inventory

Beginning Balance 28400 ?

Direct Materials 69500

Direct Labor 40,400

Applied Overhead ?

Ending Balance 19800

Finished Goods Inventory

Beginning Balance 40700 ?

Cost of goods Completed ?

Ending Balance 48200

Cost of Goods Sold

Unadjusted cost of Goods Sold ?

Adjusted cost of Goods Sold ?

Sales revenue

305,000

Manufacturing Overhead

Indirect Materials 8800 ? Applied Overhead

Indirect Labor 13900

Factory Depreciation 11,100

Factory Rent 5900

Factory Utilities 1400

Other Factory Cost 8600

Actual Overhead 49700

Selling, General, and Admin Expenses

Adm. Salaries 26100

Office Depreciation 18100

Advertising 13200

Ending Balance 57400

Chart for Part 4:

Beginning Raw Materials Inventory:

Plus: Raw Materials Inventory:

Less: Indirect Material Used:

Less: Ending Raw Materials Inventory:

Direct Materials Used in Production:

Direct Labor:

Manufacturing Overhead:

Total Current Manufacturing Costs $0

Plus: Beginning Work in Process Inventory:

Total Work In Process $0

Less: Ending work in process:

Cost Of Goods Manufactured:

Plus: Beginning Finished Goods Inventory:

Cost of Goods Available for sale $0

Less: Ending finished goods inventory:

Unadjusted Cost of Goods Sold:

:Adjustment for Overapplied Overhead:

Adjusted cost of Goods Sold: