Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). In computing a predetermined overhead rate at the beginning of the year, the company's estimates were as follows: manufacturing overhead cost, $1,037,000; direct materials to be used in production, $610,000. The company's inventory accounts at the beginning and end of the year were as follows: Raw Materials Work in Process Finished Goods Beginning $ 74,500 75,500 411,000 Ending $ 21,100 161,000 271,000 The following actual costs were incurred during the year: Purchase of raw materials (all direct) Direct labour cost Manufacturing overhead costs: Indirect labour Property taxes Depreciation of equipment Maintenance Insurance Rent, building Required: $499,000 95,500 181,000 49,100 271,000 96,100 8,100 191,000 1-a. Compute the predetermined overhead rate for the year. Predetermined overhead rate % 1-b. Compute the amount of under- or overapplied overhead for the year. 2. Prepare a schedule of cost of goods manufactured for the year. GITANO PRODUCTS Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Raw materials used in production Total manufacturing costs Cost of goods manufactured + Help Save 3. Compute the cost of goods sold for the year. (Do not include any under- or overapplied overhead in your cost of goods sold figure.) Cost of goods sold Help 3. Compute the cost of goods sold for the year. (Do not include any under- or overapplied overhead in your cost of goods sold figure.) Cost of goods sold 4. Job 215 was started and completed during the year. What price would have been charged to the customer if the job required $9,600 in direct materials and $3,800 in direct labour cost and the company priced its jobs at 30% above cost to manufacture? Price to customer 5. Direct materials made up $25,100 of the $161,000 ending work-in-process inventory balance. Compute the missing amounts. Direct materials Direct labour Manufacturing overheadi $ Amount 25,100 Work-in-process inventory $ 161,000