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 $50,300 and its total manufacturing overhead cost to be $95,570.

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

Required:
1.	Calculate the predetermined overhead rate.

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.

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 $50,300 and its total manufacturing overhead cost to be $95,570. Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow: Required 1. Calculate the predetermined overhead rate. Answer is complete but not entirely correct 2X% of Direct Labor Cost etermined overhead Rate 2. Fill in the missing values in the Taccounts. Answer is complete and correct Work in Process Inventory Raw Materials Inventory 14,900 79,400 198,780V Beginning Balance Beginning Balance 29,300 Direct Materials 93,800 Purchases 69,600 41,200 29,300 Ending Balance Direct Labor 78.280 Applied Overhead 19,600 Ending Balance Finished Goods Inventory Cost of Goods Sold 190,480 Beginning Balance 40,600 Unadjusted Cost of Goods Sold 190,480 198,780 Adjusted Cost of Goods Sold 166,000 Cost of Goods Completed 48,900 Ending Balance