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 $58,500 and its total manufacturing overhead cost to be $111,150. 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					Work in Process Inventory
Beginning Balance	13,900				Beginning Balance	29,600
Purchases	93,500				Direct Materials	68,100
Ending Balance	28,100				Direct Labor	$40,200
					Applied Overhead
					Ending Balance	19,900
Finished Goods Inventory					Cost of Goods Sold
Beginning Balance	40,400				Unadjusted Cost of Goods Sold
Cost of Goods Completed					Adjusted Cost of Goods Sold
Ending Balance	49,900
Sales Revenue					Manufacturing Overhead
		318,000			Indirect Materials	11,200		Applied Overhead
					Indirect Labor	13,200
					Factory Depreciation	11,200
					Factory Rent	5,100
					Factory Utilities	2,100
					Other Factory Costs	9,200
					Actual Overhead	52,000
Selling, General, and Administrative Expenses
Adm. Salaries	27,100
Office Depreciation	19,800
Advertising	13,100
Ending Balance	60,000

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	$0
Total Work in Process	$0
Cost of Goods Manufactured
Cost of Goods Available for Sale	$0
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