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 $51,700 and its total manufacturing overhead cost to be $98,230. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required:

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.

Fill in the missing values in the T-accounts.

Raw Materials Inventory					Work in Process Inventory
Beginning Balance	14,800	80,100			Beginning Balance	28,300
Purchases	93,700				Direct Materials	69,000
Ending Balance	28,400				Direct Labor	$41,200
					Applied Overhead
					Ending Balance	19,700
Finished Goods Inventory					Cost of Goods Sold
Beginning Balance	41,900				Unadjusted Cost of Goods Sold
Cost of Goods Completed					Adjusted Cost of Goods Sold
Ending Balance	48,400
Sales Revenue					Manufacturing Overhead
		315,000			Indirect Materials	11,100		Applied Overhead
					Indirect Labor	14,300
					Factory Depreciation	12,800
					Factory Rent	5,300
					Factory Utilities	1,200
					Other Factory Costs	8,400
					Actual Overhead	53,100
Selling, General, and Administrative Expenses
Adm. Salaries	26,800
Office Depreciation	19,200
Advertising	14,200
Ending Balance	60,200

Compute over- or underapplied overhead.

Manufacturing Overhead

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
Plus: Raw Material Purchases
Less: Indirect Material Used
Less: Ending Raw Materials Inventory
Direct Materials Used in Production
Manufacturing Overhead
Direct Labor
Total Current Manufacturing Costs	$0
Plus: Beginning Work in Process Inventory
Total Work in Process	$0
Less: Ending Work in Process Inventory
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

Prepare a brief income statement for the company.

DOBSON MANUFACTURING COMPANY
Income Statement
Net Income from Operations