Dream Makers is a small manufactuere of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $455,600, and management budgeted 33,500 direct labor hours. The company had no materials, work-in-process or finished goods inventory at the beginning of April. These transactions were recorded during April:

a) April insurance cost for the manufacturing property and equipment was $1,800. The premium had been paid in January.

b) Recorded $1,025 depreciation on an administrative asset.

c) Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials).

d) Paid factory utility bill, $6,510 in cash.

e) Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs.

f) Incurred and paid other factory overhead costs, $6,270.

g) Purchased $24,500 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials.

h) Requisitioned $18,500 of direct materials and $1,600 of indirect materials from materials inventory.

i) Incurred miscellaneous selling and administrative expenses, $5,660.

j) Incurred $3,505 depreciaiton on manufacturing equipment for April.

k) Paid advertising expenses in cash, $2,650.

l) Applied factory overhead to production on the basis of direct labor hours.

m) Completed goods costing $64,000 manufactured during the month.

n) Made sales on account in April: $56,410. The cost of goods sold was $47,860.

Required:

(1) Prepare journal entries to record the April: events.

(2) Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on April 30.

(3) Prepare a schedule of cost of goods manufactured and sold.

(4) Prepare the income statement for April.