Finished Goods Beg. $54,800 $65,400 $85,300 Raw Materials Beg. $10,000 $35,000 $37,500 Wages Payable Direct Labor $43,200 Beg. COGS $0 Work in Process $65,400 Beg. $18,500 $37,500 $43,200 MOH Control $45,200 Use the t-accounts above, along with the additional information below to answer the questions. . All materials used were classified as direct materials (indirect materials negligeable and not reported separately) Direct manufacturing labor is paid at a rate of $15.00 per labor hour Manufacturing overhead is allocated based on direct labor hours and an overhead rate of $20.00 per labor hour. Sales revenue for the year was $148,000 Operating expenses (marketing and distribution) expenses for the period were $42,000) 1. What is the amount of direct materials used in production in 2021? 2. Calculate the amount of manufacturing overhead applied in 2021 and make the appropriate entry in the t-accounts. 3. What was the total cost of jobs completed and transferred to Finished Goods Inventory in 2021? Calculate the ending balance in Work in Process Inventory after this transfer. 4. What was the Cost of Goods Sold before any adjusting entries? 5. Calculate the amount of mis-applied overhead for 2021. Was it over- or under-applied? 6. How would you dispose of the mis-applied overhead if the amount is considered immaterial? Calculate the adjusting entry to MOH Control and COGS accounts. 7. How would you dispose of the mis-applied overhead if the amount is considered material? Calculate the adjusting entries to MOH Control, Work in Process Inventory, Finished Goods Inventory, and COGS accounts. What is the ending balance in each account after the adjustment? 8. Using each approach (Q6 and Q7), calculate the net operating income if sales revenue was $148,000 and operating expenses were $42,000. 9. Which approach do you recommend Spartans Inc. use in this situation? Briefly explain your reasoning