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 $50,300 and its total manufacturing overhead cost to be $95,570.

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.Make a statement of cost of goods manufactured and sold including the adjustment for over- or underapplied overhead.

5.Make a brief income statement for the company.

1.Calculate the predetermined overhead rate.

Predetermined Overhead Rate __% of Direct Labor Cost

2.

Fill in the missing values in the T-accounts. Raw Materials Inventory Work in Process Inventory Beginning Balance 13.200 79,400 Beginning Balance 20,200 Purchases 93,200 Direct Materials 68,600 Ending Balance 28,000 Direct Labor S 41,900 Applied Overhead Ending Balance 19.200 Finished Goods Inventory Cost of Goods Sold Beginning Balance 40.500 Unadjusted Cost of Goods Sold Cost of Goods Completed Adjusted Cost of Goods Sold Ending Balance 49.500 Sales Revenue Manufacturing Overhead 316,000 Indirect Materials 9.800 Applied Overhead Indirect Labor 14.000 Factory Depreciation 11.200 Factory Rent 6.400 Factory Utilities 2.400 Other Factory Costs 9.900 Actual Overhead 53.700 Selling, General, and Administrative Expenses Adm. Salaries 27.100 Office Depreciation 19.700 Advertising 13.200 Ending Balance 80,000Prepare 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 SoldPrepare a brief income statement for the company. DOBSON MANUFACTURING COMPANY Income Statement Net Income from Operations