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 $800.000 of manufacturing overhead for an estimated allocation base of $500,000 direct material dollars to be used in production, The company has provided the following data for the just completed year $10.000 5 90,000 Purchare ut av naterials Ditert labor cest acturint overhead coats Initirect labor Property taxe Depreciation of urent Maintenice Ince Rent building 170,000 1 43.000 3200.000 5 95.000 3 7.000 $180.000 Raw Materials Work in Process Finished Goods Bering Ending $ 20.000 80.000 $ 150,000 $70.000 $260.000 $ 400.000 Required: 1 Compute the predetermined overhead rate for the year 2 Compute the amount of underapplied or overapplied overhead for the year 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 $70,000 ending balance in Work in Process includes $24000 of direct materials. Given this assumption, supply the Information missing below: 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 $800,000 of manufacturing overhead for an estimated allocation base of $500,000 direct material dollars to be used in production The company has provided the following data for the just completed year $ 510,000 $ 90.000 Purchase of raw material Direct labor court Manufacturing overhead coats Indirect labor Property taxes Depreciation of equipment Maintenance Insurance Rent, building 1 170.000 1 48.000 $260.000 1 95.000 3 7.000 $ 180,000 Ray Material: Work in Process Finished Goods Beginning Ending $ 20,000 $80.000 $ 150.000 $70,000 $ 260,000 $ 400.000 Required: 1. Compute the predetermined overhead rate for the year, 2 Compute the amount of underapplied or overapplied overhead for the year, 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 $70,000 ending balance in Work in Process includes $24.000 of direct materials. Given this assumption supply the information missing below
