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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

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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 $465,800, and management budgeted 34,000 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: . April insurance cost for the manufacturing property and equipment was $1,850. The premium had been paid in January b. Recorded $1,060 depreciation on an administrative asset. c. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials). The purchase was on credit. d. Paid factory utility bill, $6,550, in cash e. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount 1000 hours and $20,000 were indirect labor costs. f. Incurred and paid other factory overhead costs, $6,300 9. Purchased $25,000 of materials. Direct materials included unpolished semiprecious stones and gold, Indirect materials included supplies and polishing materials. The purchase was on credit h. Requisitioned $19.000 of direct materials and $1,700 of indirect materials from Materials Inventory Incurred and paid miscellaneous selling and administrative expenses, $5,800 j. Incurred $3,610 depreciation on manufacturing equipment for April k. Paid advertising expenses in cash, $2.725. 1. Applied factory overhead to production on the basis of direct labor hours m. Completed goods costing $64,500 duning the month n Made sales on account in April, $57,620 The Cost of Goods Sold was $48,700 Required: 1. Compute the firm's predetermined factory overhead rate for the year 2. Prepare Journal entries to record the April events 3. Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on April 30. 4. Prepare a schedule of Cost of Goods Manufactured and a schedule of Cost of Goods Sold 5. Prepare the income statement for April

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