Individual Assignment 1 Question 1 Far West Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct material cost. Its predetermined overhead rate was based on a cost formula that estimated $500,000 of manufacturing overhead for an estimated allocation base of $390,625 direct material dollars. The company has provided the following data in the form of an Excel worksheet: Beginning Ending Raw Materials $38,000 $55,000 Work in Process 79,000 166,125 Finished Goods 47,000 138,000 The following actual costs were incurred during the year: Purchase of raw materials $450,000 Direct labor cost $119,000 Manufacturing overhead costs: Indirect materials 104,875 Insurance, factory 102,000 Depreciation of equipment 35,000 Indirect labor 32,700 Property taxes 41,000 Maintenance 23,425 Rent, building 49,000 Required: 1. Compute the predetermined overhead rate for the year. 2. Prepare a schedule of cost of goods manufactured for the year. 3. Compute the amount of underapplied or overapplied overhead for the year. 4. Prepare a schedule of cost of goods sold for the year. Adjust the underapplied or overapplied overhead to cost of goods sold. 5. Prepare all journal entries related to manufacturing overhead. Besides indirect materials, indirect labor and depreciation, all other costs are recorded as accounts payable