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). Its predetermined overhead rate was based on a cost formula that estimated $120,900 of manufacturing overhead for an estimated allocation base of $93,000 direct material dollars to be used in production. The company has provided the following data for the just completed year:

Purchase of raw materials	$	136,000
Direct labor cost	$	89,000
Manufacturing overhead costs:
Indirect labor	$	107,400
Property taxes	$	8,400
Depreciation of equipment	$	16,000
Maintenance	$	13,000
Insurance	$	11,100
Rent, building	$	39,000

	Beginning		Ending
Raw Materials	$	29,000	$	18,000
Work in Process	$	49,000	$	36,000
Finished Goods	$	72,000	$	56,000

Required:

3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials.

4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer.

5. Assume that the $36,000 ending balance in Work in Process includes $8,700 of direct materials. Given this assumption, supply the information missing below:

Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials.

Gitano Products
Schedule of Cost of Goods Manufactured
Direct materials:
	$29,000
	136,000
Total raw materials available	165,000
	18,000
Raw materials used in production		$147,000
		89,000
Total manufacturing costs
		0
Cost of goods manufactured

4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer.

	Unadjusted cost of goods sold

5.

Assume that the $36,000 ending balance in Work in Process includes $8,700 of direct materials. Given this assumption, supply the information missing below:

Direct materials
Direct labor
Manufacturing overhead
Work in process inventory	$0