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 $55,700 and its total manufacturing overhead cost to be $105,830. 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. Prepare a statement of cost of goods manufactured and sold including the adjustment for over- or underapplied overhead.

5. Prepare a brief income statement for the company.

Required 1 Required 2 Required 3 Required 4 Required 5 Fill in the missing values in the T-accounts. Raw Materials Inventory 13,900 Work in Process Inventory 29.300 Beginning Balance Purchases Beginning Balance Direct Materials 94.000 69,200 Ending Balance 29,600 Direct Labor $ 40.900 Applied Overhead Ending Balance 18,000 Cost of Goods Sold Finished Goods Inventory 41,200 Beginning Balance Cost of Goods Completed Ending Balance Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold 48,600 Sales Revenue Manufacturing Overhead 9,100 307,000 Indirect Materials Applied Overhead Indirect Labor 14.700 12.800 6.600 Factory Depreciation Factory Rent Factory Utilities Other Factory Costs Actual Overhead 1.800 8,300 53,300 Selling, General, and Administrative Expenses Adm. Salaries 26,900 Office Depreciation 19,700 Advertising 14,700 Ending Balance 61,300