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 $85,170.

Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow:

Required: 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 Beginning Balance Purchases Ending Balance 13,900 94,800 28,400 Beginning Balance Direct Materials Direct Labor Work in Process Inventory 29,000 68,600 $ 41,700 Applied Overhead Ending Balance 19,600 Finished Goods Inventory Beginning Balance 41,700 Cost of Goods Completed Ending Balance 48,600 Cost of Goods Sold Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold Sales Revenue 304,000 Applied Overhead Indirect Materials Indirect Labor Factory Depreciation Factory Rent Factory Utilities Other Factory Costs Actual Overhead Manufacturing Overhead 11,700 14,000 12,500 7,000 1,400 9,300 55,900 Selling, General, and Administrative Expenses Adm. Salaries 26,200 Office Depreciation 19,000 Advertising 13,900 Ending Balance 59,100 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 Report and Sold 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 Sold 5. Prepare a brief income statement for the company. DOBSON MANUFACTURING COMPANY Income Statement Net Income from Operations