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 $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:

1. April insurance cost for the manufacturing property and equipment was $1,800. The premium had been paid in January.
2. Recorded $1,025 depreciation on an administrative asset.
3. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials). The purchase was on credit.
4. Paid factory utility bill, $6,510, in cash.
5. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs.
6. Incurred and paid other factory overhead costs, $6,270.
7. Purchased $24,500 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials. The purchase was on credit.
8. Requisitioned $18,500 of direct materials and $1,600 of indirect materials from Materials Inventory.
9. Incurred and paid miscellaneous selling and administrative expenses, $5,660.
10. Incurred $3,505 depreciation on manufacturing equipment for April.
11. Paid advertising expenses in cash, $2,650.
12. Applied factory overhead to production on the basis of direct labor hours.
13. Completed goods costing $64,000 during the month.
14. Made sales on account in April, $56,410. The Cost of Goods Sold was $47,860.

Required:

4. Prepare a schedule of Cost of Goods Manufactured and a schedule of Cost of Goods Sold.

5. Prepare the income statement for April.

Dream Makers
Statement of Cost of Goods Manufactured
For the Month Ended April 30
Direct materials usedselected answer correct	not attempted	$18,500selected answer correct
Direct laborselected answer correct	not attempted	140,000selected answer correct
Factory overhead appliedselected answer correct	not attempted	40,800selected answer correct
Total manufacturing costs incurred during year		199,300selected answer correct
Add: Work-in-process inventory, Beginningselected answer correct		not attempted
Total manufacturing costs to account for		199,300selected answer correct
Less: Work-in-process inventory, Endingselected answer correct		$(135,300)selected answer correct
Cost of goods manufactured		$64,000selected answer correct
Actual overhead
Indirect materials usedselected answer correct	not attempted
Other factory overheadselected answer correct	not attempted
Direct materials usedselected answer incorrect	not attempted
Direct laborselected answer incorrect	not attempted
Indirect materials usedselected answer incorrect	not attempted
Indirect materials usedselected answer incorrect	not attempted
Factory overhead appliedselected answer incorrect	not attempted
Total factory overhead	not attempted
Total applied overhead	not attempted
Overapplied overheadselected answer correct	not attempted