Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (no! on the basis of raw materials purchased). Its predetermined. overhead rate was based on a cost formula that estimated $800,000 of manufacturing overhead for all estimated allocation base of$500,000 direct material dollars to be used in production. The company has provided the follo'wirn,I data for the just completed year: Purchase of raw materials Direct labor cost Manufacturing overhead costs: Indirect labor $1?0,000 Property taxes 548.000 Depreciation of equipment $260,000 Maintenance $95,000 Insurance Rent. building $180,000 Beginning Ending Raw Materials $20000 $80000 Work in Process 3150.000 $70,000 Finished Goods 5260.000 $400,000 a. (2 points} Compute the predetermined overhead rate for the year. 0. (2 points} Compute the amount ul'underapplied or overapplied overhead for the year. e. [2 points] Prepare a schedule of emit ol' goods manufactured For the year. Assume all raw materials are used in produetion as direct materials. d. {2 points) Compute the unadjusted cost of goods sold for the year. Do not include any undetupplied or overapplied overhead in your answer. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials. Gitano Products This is an Schedule of Cost of Goods Manufactured Direct materials: answer Beginning raw materials inventory 5 20,000 For Add: Purchases of raw materials 510,000 Alllestinn r Total raw materials available 530,000 From Less: Ending raw materials inventory 80,000 Question 1. Raw materials used in production S 450,000 Why did they use 720,000 course Direct labor 90,00Q Instead of 760,000 (actual Manufacturing overhead applied to work in process 720,000 Total manufacturing cost 1,260.009 MOH costs)? Add: Beginning work in process inventory 150,000 1,410,000 Less: Ending work in process inventory 70,000 Cost of goods manufactured $ 1.340 000