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 $642,600, and management budgeted 42,000 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 $2,650 The premium had been paid in January Recorded $1,620 depreciation on an administrative asset Purchased 21 pounds of high grade polishing materials at $16 per pound (indirect materials) Paid factory utility bill, $7,190, in cash Incurred 4,000 hours and paid payroll costs of $160,000 Of this amount, 1,000 hours and $20,000 were indirect labor costs Incurred and paid other factory overhead costs, $6,780 Purchased $33,000 of materials Direct materials included unpolished semiprecious stones and gold Indirect materials included supplies and polishing materials Requisitioned $27,000 of direct materials and $3,300 of indirect materials from Materials Inventory Incurred miscellaneous selling and administrative expenses, $8,040 Incurred $5,290 depreciation on manufacturing equipment for April Paid advertising expenses in cash, $3,925 Applied factory overhead to production on the basis of direct labor hours Completed goods costing $72,500 during the month Made sales on account in April, $77,980 The Cost of Goods Sold was $62,140 Required 1 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 ) 2 Prepare the income statement for April Please use the format in the pictures above for both questions Balance Relative amount Share of overapplied overhead Work in Process Finished Goods Cost of Goods Sold Total 0 00 0 $ 0 00 Dream Makers Income Statement For the Month Ended April 30 Sales revenue $ 3,925 Cost of goods sold Gross margin Advertising expense Selling and administrative Total selling administrative expenses Operating income

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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

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 $642,600, and management budgeted 42,000 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 $2,650. The premium had been paid in January.
Recorded $1,620 depreciation on an administrative asset.
Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials).
Paid factory utility bill, $7,190, in cash.
Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs.
Incurred and paid other factory overhead costs, $6,780.
Purchased $33,000 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials.
Requisitioned $27,000 of direct materials and $3,300 of indirect materials from Materials Inventory.
Incurred miscellaneous selling and administrative expenses, $8,040.
Incurred $5,290 depreciation on manufacturing equipment for April.
Paid advertising expenses in cash, $3,925.
Applied factory overhead to production on the basis of direct labor hours.
Completed goods costing $72,500 during the month.
Made sales on account in April, $77,980. The Cost of Goods Sold was $62,140.

Required:

1. 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.)

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2. Prepare the income statement for April.

image text in transcribed

Please use the format in the pictures above for both questions.

Balance Relative amount Share of overapplied overhead Work-in-Process Finished Goods Cost of Goods Sold Total % % % 0.00% 0 $ 0.00 Dream Makers Income Statement For the Month Ended April 30 Sales revenue $ 3,925 Cost of goods sold Gross margin Advertising expense Selling and administrative Total selling & administrative expenses Operating income