Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. To calculate a predetermined overhead rate at the beginning of the year, the company's estimates were:

manufacturing overhead cost - $95,450

and estimated machine hours - 8,300

The company has provided the following additional data:

	Beginning	Ending
Raw Materials	$15,200	$12,700
Work in Process	$45,000	$66,000
Finished Goods	$62,300	$56,100

During the year, the company used 7,950 (actual) machine hours for production and incurred the following actual costs:

	Amount
Purchase of raw materials (all direct)	$91,200
Direct labour cost	$79,400
Manufacturing overhead costs:
Indirect labour	$6,600
Property taxes	$15,400
Depreciation of equipment	$41,350
Maintenance	$8,650
Insurance	$11,200
Rent, building	$33,100

Required: (1 +1+1+1+1+2+1+2+2+2 = 14)

a) Compute the predetermined overhead rate for the year.

b) Calculate the amount of cost of raw materials used in production

c) Compute the amount of applied overhead for the year.

d) Calculate the amount of cost of goods manufactured for the year.

e) Compute the cost of goods sold for the year.

f) Create a ledger for manufacturing overhead based on the information given above.

g) Compute the amount of under-applied or over-applied overhead for the year.

h) Give a journal entries to adjust the under-applied or over-applied overhead cost to COGS.

i) Job 217 was started and completed during the year. What price should be charged to the customer if the job requires $3,800 direct material cost, $4,200 direct labor cost & 320 machine hours to complete, and the company charges a 35% profit on the cost?

j) Direct materials made up $28,200 of the $66,000 ending Work in Process inventory balance. If the machine hours used to process the work in process inventory is 2350, calculate the information missing below:

	Amount
Direct materials	28,200
Direct labor	?
Manufacturing overhead	?