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 $50,100 and its total manufacturing overhead cost to be $90,180.

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.

Predetermined Overhead Rate

180

% of Direct Labor Cost

sheet is drawn here

2. Fill in the missing values in the T-accounts.

Raw Materials Inventory					Work in Process Inventory
Beginning Balance	13,100	78,000			Beginning Balance	28,900
Purchases	93,300				Direct Materials	68,600
Ending Balance	28,400				Direct Labor	$ 41,900
					Applied Overhead
					Ending Balance	19,600
Finished Goods Inventory					Cost of Goods Sold
Beginning Balance	41,300				Unadjusted Cost of Goods Sold
Cost of Goods Completed	6,900				Adjusted Cost of Goods Sold
Ending Balance	48,200
Sales Revenue					Manufacturing Overhead
		318,000			Indirect Materials	9,400		Applied Overhead
					Indirect Labor	14,800
					Factory Depreciation	12,400
					Factory Rent	5,500
					Factory Utilities	2,200
					Other Factory Costs	9,900
					Actual Overhead	54,200
Selling, General, and Administrative Expenses
Adm. Salaries	27,400
Office Depreciation	19,200
Advertising	13,200
Ending Balance	59,800
sheet is drawn here										3. Compute over- or underapplied overhead.

Manufacturing Overhead

sheet is drawn here

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

DOBSON MANUFACTURING COMPANY
Income Statement
Sales Revenue
Cost of Goods Sold
Gross Profit
Selling, General, and Administrative Expenses
Net Income from Operations