Exercise 4-21 Your answer is partially correct. Try again. Drew Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each team's uniform is unique in color and design, Drew uses a job order costing system. On January 1, the T-accounts for some of Drew's primary balance sheet accounts were as follows: Raw Materials Inventory 15,000 Work in Process Inventory 31,000 Beg. Beg. Accounts Payable Accounts Receivable 56,000 Beg. Beg. 42,000 Finished Goods 22,000 Beg. Cash 32,000 Beg. During the year, the following events occurred: 1. Drew purchased raw materials costing $86,000 on account. 2. Drew used $93,000 of raw materials in production. Of these, 70% were classified as direct materials and 30% as indirect materials. (Drew maintains a single Raw Materials Inventory account.) 3. Drew used 31,200 hours of direct labor. The company's average direct labor rate was $7.5 per hour (credit Wages Payable). 4. The company's only indirect labor cost was the salary of a security guard hired to watch the company's shop after hours. The guard's annual salary was $25,000 (credit Wages Payable). 5. Other manufacturing overhead costs the company incurred on account totaled $70,000. 6. Drew applied $130,000 in manufacturing overhead. 7. The company completed production of goods costing $326,000. 8. The company's Cost of Goods Sold balance was $303,750 before adjusting for over- or underapplied overhead. 9. Sales revenue was $425,000 (all sales were made on account). 10. Drew collected $450,000 from customers. 11. The company paid accounts payable of $100,000. 12. At year-end, all wages earned during the year had been paid. (a) Calculate under- or overapplied overhead for the year. (Round answer to 0 decimal places, e.g. 5,275.) Overapplied 7100 Overhead by $ (b) Assuming that Drew closes under- or overapplied overhead to Cost of Goods Sold, calculate the cost of goods sold for the year. 299276.29 Adjusted cost of goods sold 10) Ansering, that creat per caters sode balance police overhead to the appropriate a (C) Assuming that Drew prorates under- or overapplied overhead to the appropriate accounts, calculate the adjusted Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold balances for the year. (Round % of total to 1 decimal place, e.g 52.7%, allocation and final answers to 2 decimal places, e.g. 52.75.) Adjusted Balance 134100 Work In Process X 44250 Finished Goods 303750 Cost of Goods Sold Exercise 4-21 Your answer is partially correct. Try again. Drew Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each team's uniform is unique in color and design, Drew uses a job order costing system. On January 1, the T-accounts for some of Drew's primary balance sheet accounts were as follows: Raw Materials Inventory 15,000 Work in Process Inventory 31,000 Beg. Beg. Accounts Payable Accounts Receivable 56,000 Beg. Beg. 42,000 Finished Goods 22,000 Beg. Cash 32,000 Beg. During the year, the following events occurred: 1. Drew purchased raw materials costing $86,000 on account. 2. Drew used $93,000 of raw materials in production. Of these, 70% were classified as direct materials and 30% as indirect materials. (Drew maintains a single Raw Materials Inventory account.) 3. Drew used 31,200 hours of direct labor. The company's average direct labor rate was $7.5 per hour (credit Wages Payable). 4. The company's only indirect labor cost was the salary of a security guard hired to watch the company's shop after hours. The guard's annual salary was $25,000 (credit Wages Payable). 5. Other manufacturing overhead costs the company incurred on account totaled $70,000. 6. Drew applied $130,000 in manufacturing overhead. 7. The company completed production of goods costing $326,000. 8. The company's Cost of Goods Sold balance was $303,750 before adjusting for over- or underapplied overhead. 9. Sales revenue was $425,000 (all sales were made on account). 10. Drew collected $450,000 from customers. 11. The company paid accounts payable of $100,000. 12. At year-end, all wages earned during the year had been paid. (a) Calculate under- or overapplied overhead for the year. (Round answer to 0 decimal places, e.g. 5,275.) Overapplied 7100 Overhead by $ (b) Assuming that Drew closes under- or overapplied overhead to Cost of Goods Sold, calculate the cost of goods sold for the year. 299276.29 Adjusted cost of goods sold 10) Ansering, that creat per caters sode balance police overhead to the appropriate a (C) Assuming that Drew prorates under- or overapplied overhead to the appropriate accounts, calculate the adjusted Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold balances for the year. (Round % of total to 1 decimal place, e.g 52.7%, allocation and final answers to 2 decimal places, e.g. 52.75.) Adjusted Balance 134100 Work In Process X 44250 Finished Goods 303750 Cost of Goods Sold