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 $1,190,000; direct materials to be used in production, $680,000. The company's Inventory accounts at the beginning and end of the year were as follows: Raw Materials Work in Process Finished Goods Beginning $ 71,000 79,000 418,000 Ending $ 21,800 168,000 278,000 The following actual costs were incurred during the year: $492,680 99,000 Purchase of raw materials (all direct) Direct labour cost Manufacturing overhead costs: Indirect labour Property taxes Depreciation of equipment Maintenance Insurance Rent, building 188,888 49,888 278,000 96,800 8,888 198,000 Required: 1-a. Compute the predetermined overhead rate for the year. Predetermined overhead rate 175 % 1-b. Compute the amount of under-or overapplied overhead for the year. Overapplied overhead is $ 127,700 2. Prepare a schedule of cost of goods manufactured for the year GITANO PRODUCTS Schedule of Cost of Goods Manufactured Direct materials Raw materials inventory beginning S Add: Purchases of raw materials Total raw materials available Deduct: Raw materials inventory ending Raw materials used in production Direct labour Manufacturing overhead cast applied to work in process 71,000 492,000 563,000 21,200 S 541,200 99,000 947.100 S Total manufacturing costs Add: Work in process, beginning S 1.587,300 79,000 300 168,000 1.498,300 Deduct Wark in process, ending Cost of goods manufactured S 3. Compute the cost of goods sold for the year. (Do not include any under-or overspplied overhead in your cost of goods sold figure.) Cast af goods sold S 1,838,300 4. Job 215 was started and completed during the year. What price would have been charged to the customer if the job required $10,300 in direct materials and $4.500 in direct labour cost and the company priced its jobs at 20% above cost to manufacture? Price to customer S 39,390 5. Direct motericis made up $25,800 of the $168.000 ending work-in-process inventory balance. Compute the missing amounts. Amount S 25,800 Direct materials Direct labour Manufacturing overhead Work in process inventory S 168,000