General ledger relationships, under-and overallocating. Southwick Company uses normal costing in its job-costing system. Partially completed T-accounts and additional information for Southwick for 2014 are as follows:

Direct materials control

1-1-2014 25,000 240,000

234,000

Work-in-process control

1-1-2014 44,000 Dir. manuf. labor 348,000

Finished goods

1-1-2014 10,000 925,000

880,000

Manufacturing overhead control

514,000

Manufacturing overhead allocated

Cost of goods sold

Additional information follows:

a.) Direct manufacturing labor wage rate was $12 per hour.

b.) Manufacturing overhead was allocated at $16 per direct manufacturing labor-hour.

c.) During the year, sales revenues were $1,050,000, and marketing and distribution costs were $125,000.

1.) What was the amount of direct materials issued to production during 2014?

2.) What was the amount of manufacturing overhead allocated to jobs during 2014?

3.) What was the total cost of jobs completed during 2014?

4.) What was the balance of work-in-process inventory on December 31,2014?

5.) What was the cost of goods sold before proration of under-or overallocated overhead?

6.) What was the under-or overallocated manufacturing overhead in 2014?

7.) Dispose of the under-or overallocated manufacturing overhead using the following:

a.) Writeoff to Cost of Goods Sold

b.) Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold.

8.) Using each of the approaches in requirement 7, calculate Southwick's operating income for 2014.

9.) Which approach in requirement 7 do you recommend Southwick use? Explain your answer briefly.

(SHOW ALL YOUR WORK FOR ALL)