I NEED ANSWER TO QUESTION 3 THANKS

Assignment - Job Order Costing Northwest Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of direct materials used in production. At the beginning of the current year, the following estimates were made for the purpose of computing the pre-determined overhead rate: Budgeted manufacturing overhead cost was expected to be $620,000 Budgeted direct material cost for the year was expected to be $387,500 The following transactions took place during the year: 1. Raw material purchases totaled $355,000. 2. Raw materials requisitioned for use in production (all direct materials) totaled $375,000. 3. Utility costs incurred in the manufacturing plant were $52,500. 4. Costs for salaries and wages were incurred as follows: Direct labour Indirect labour Selling and Administrative salaries $540,000 $225,000 $362,500 5. Maintenance costs incurred in the manufacturing plant were $37,500. 6. Advertising costs for the year totaled $325,000. 7. The company recorded depreciation of $125,000 for the year. 90% of the depreciation relates to manufacturing equipment. 8. The company paid $225,000 in rent for their facilities. The manufacturing plant used approximately 80% of the space in the facility. 9. Manufacturing overhead was applied to jobs during the year. 10. The cost of goods manufactured for the year was $1,475,000. 11. Sales for the year totaled $2,500,000. The unadjusted cost of goods sold for these jobs was $1,500,000 12. Miscellaneous selling and administrative costs were $70,000 for the year. 13. The balances in the inventory accounts at the beginning of the year were as follows: Raw materials Work-in-process Finished goods $45,000 $60,000 $87,500 3. The company has decided to write off the difference between the allocated overhead and the actual overhead to cost of goods sold. Prepare a cost of goods sold schedule. Predetermined overhead rate = $620,000/387,500 * 100 - 160% Applied manufacturing overhead = $375,000* 160% = $600,000 (2) Beg.Bal. (1) Raw material inventory $45,000 $375,000 355,000 $25,000 End.Bal Beg.Bal. Work in process inventory $60,000 $1,475,000 375,000 540,000 600,000 End.Bal. 100,000 Beg.Bal. (10) Finished Goods $87,500 $1,500,000 1,475,000 $62,500 End.Bal. Manufacturing overhead $52,500 $600,000 225,000 37,500 (5) 112,500 180,000 (8) Bal. 7,500 7) = Depreciation = 125,000*90% (8) = Rent = 225,000* 80% Solution: 1 Rate answer here. Northwest Company Cost of goods manufacturing schedule for the year ended Particulars | Amount Amount Direct Raw Material: Beginning Raw Material $45,000 Add Cost of raw material purchased $3,55,000 Total Raw Materila available for production $4,00,000 Less Raw Materials used in production $3,75,000 $3,75,000 Closing Raw Material $25,000 Direct Labor $5,40,000 Manufacturing Overhead Utility cost incurred Indirect Labor Maintence cost Depreciation Manufacturing Rent Total Manufacturing Cost Add Beginning Work in Progress Less Ending Work in Progress Cost of goods manufactured $52,500 $2,25,000 $37,500 $1,12,500 $1,80,000 $6,07,500 $15,22,500 $60,000 $1,07,500 | Ending Work in Progress = $ 15,22,500 + $ 60,000 - $ 14,75,000 $14,75,000 Given in the accounting question Northwest Company Income Statement for the year ended Particulars Amount | Amount Sales $25,00,000 Beginning finished goods inventory $87,500 Cost of goods manufactured $14,75,000 Total goods available for sale $15,62,500 Ending finished good inventory $62,500 Cost of goods sold $15,00,000 Gross Profit $10,00,000 Operating Expense Ending Finished goods inventory = $ 15,62,500 - $ 15,00,000 $3,62,500 $3,25,000 $70,000 $7,57,500 Selling Expense Selling and adminstrative salaries Advertising Cost Miscellaneous selling and admistrative exp Total selling expense Adminstrative Expense Office Salaries Depreciation for office expense Depreciation for office expense Total Adminstrative expense $12,500 $45,000 $57,500 Total Operating Expense Operating Income $8,15,000 $1,85,000