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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

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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 $127,400 of manufacturing overhead for an estimated allocation base of $91,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: $ 138,000 $ 87,000 Purchase of raw materials Direct labor cost Manufacturing overhead coats Indirect labor Property taxes Depreciation of equipment Maintenance Insurance Rent, building $ 124,900 $ 8,800 $ 19.000 $ 15,000 $ 11,500 $ 37.000 Raw Materials Work in Process Pinished Goods Beginning Ending $ 27,000 $ 13,000 $ 45,000 $40,000 $ 74.000 $ 58,000 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 $40,000 ending balance in Work in Process includes $8,000 of direct materials. Given this assumption, supply the Information missing below. Finished Goods $ 74,000 $ 58,000 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 mat 4. Compute the unadjusted cost of goods sold for the year. Do not include any undera 5. Assume that the $40,000 ending balance in Work in Process includes $8,000 of dir information missing below: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the predetermined overhead rate for the year. Predetermined overhead rate 140% Duel Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required S Assume that the $40,000 ending balance in Work in Process includes $8,000 of direct materials. Given this assumption, supply the information missing below: $ 8,000 Direct materials Direct labor Manufacturing overhead Work in process inventory $ 40,000

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