FiberCom, Inc., a manufacturer of fiber optic communications equipment, uses a job-order costing system. Since the production process is heavily automated, manufacturing overhead is applied on the basis of machine hours using a predetermined overhead rate. The current annual rate of $15 per machine hour is based on budgeted manufacturing overhead costs of $1,200,000 and a budgeted activity level of 80,000 machine hours (the company's estimated practical capacity). Operations for the year have been completed, and all of the accounting entries have been made for the year except the application of manufacturing overhead to the jobs worked on during December, the transfer of costs from work In Process to Finished Goods for the jobs completed in December, and the transfer of costs from Finished Goods to Cost of Goods Sold for the jobs that have been sold during December. Summarized data as of November 30 and for the month of December are presented in the following table Jobs T11-007, N11-013, and N11-015 were completed during December All completed jobs except Job N11-013 had been turned over to customers by the close of business on December 31. Work-in-Process Balance Job No. November 30 T11-007 $ 87,000 N11-013 55,000 N11-015 012-092 D12-03 -- $142,800 December Activity Direct Direct Material Machine Hours Labor $ 1,500 $ 4,500 300 4,000 12,000 1,000 25,600 26,700 1,400 37,900 20,000 2,500 26,000 16,800 800 595,000 $80,000 6,000 Activity through November 30 December Activity Operating Activity Actual manufacturing overhead incurred: Indirect material Indirect labor Utilities Depreciation Total overhead Other data: Raw-material purchases Direct-labor costs Machine hours $ 125,000 345,000 245,000 385,000 $1,100,000 $ 9,000 30,000 22,000 35,000 $ 96, 965,000 845,000 73,000 98,000 80,000 6,000 Account Balances at Beginning of Year Raw-material inventory Work-in-process inventory Finished-goods inventory January 1 $ 105,000 60,000 125,000 "Raw-material purchases and raw material inventory consist of both direct and indirect materials. The balance of the raw. material Inventory account as of December 31 of the year just completed is $85.000 6. Prepare a Schedule of Cost of Goods Manufactured for Fibercom, Inc. for the year just completed. (Hint: in computing the cost of direct material used, remember that FiberCom Includes both direct and indirect material in its Raw Material Inventory account) FIBERCOM, INC Schedule of Cost of Goods Manufactured For the Year Ended December 31 Direct material Raw material inventory, 1/1 Raw material purchases Raw material available for use 5 105,000 $ 105,000 Raw material used $ 105,000 Manufacturing overhead: Total actual manufacturing overhead 0 0 Overhead applied to work in process Total manufacturing costs Subtotal $ 0 Cost of goods manufactured 0