Dream Makers is a small manufacturer 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 $630,800, and management budgeted 41,500 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 $2,600. The premium had been paid in January. b. Recorded $1,585 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, $7,150, 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, $6,750. g. Purchased $32,500 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials. h. Requisitioned $26,500 of direct materials and $3,200 of indirect materials from Materials Inventory. i. Incurred miscellaneous selling and administrative expenses, $7,900. j. Incurred $5,185 depreciation on manufacturing equipment for April. k. Paid advertising expenses in cash, $3,850. 1. Applied factory overhead to production on the basis of direct labor hours. m. Completed goods costing $72,000 during the month. n. Made sales on account in April, $76,770. The Cost of Goods Sold was $61,300. Prepare a schedule of Cost of Goods Manufactured. Dream Makers Statement of Cost of Goods Manufactured For the Month Ended April 30 $ 45,600 Factory overhead applied Direct materials used Direct labor 140,000 Total manufacturing costs incurred during year Add: Work-in-process inventory, Beginning Total manufacturing costs to account for Less: Work-in-process inventory, Ending Cost of goods manufactured Actual overhead Total factory overhead Total applied overhead Compute the amount of overapplied or underapplied overhead that should be prorated to Work-in-Process, Finished Goods, and Cost of Goods Sold. (Round both the Relative Amount and the Share of overapplied overhead to two decimal places.) Balance Relative amount Share of overapplied overhead Work-in-Process % % Finished Goods Cost of Goods Sold 10,700 61,300 72,000 % 0.00 % Total 0.00 Prepare the income statement for April. Dream Makers Income Statement For the Month Ended April 30 Sales revenue $ 76,770 4 Cost of goods sold Gross margin Selling and administrative Advertising expense Total selling & administrative expenses Operating income Prepare the income statement for April. Dream Makers Income Statement For the Month Ended April 30 Sales revenue $ 76,770 4 Cost of goods sold Gross margin Selling and administrative Advertising expense Total selling & administrative expenses Operating income