Job Order Costing $($Chapter $3)$

Kelly's Kicks is a local shoe store that manufactures and sells custom sneakers. The following information is available for Kelly's kicks for the year ended December $31,2022.$

$\backslash$table$[[,$Jan $1,2022,$Dec $31,2022],[$Direct Materials Inventory,$120,000,162,000],[$Work in Process Inventory,$37,000,22,500],[$Finished Goods Inventory,$82,000,96,000]]$

The following activity occurred during the year:

The company purchased $$225,000$ worth of direct materials throughout the year

The company paid its shoemakers a total of $$320,000$ for their work at an average of $$16$ per hour

The company incurred the following additional costs in the manufacturing process:

$\backslash$table$[[$Indirect materials used,$40,000],[$Indirect labour,$275,000],[$Utilities for the factory,$23,000],[$Sales commission,$7,500],[$Insurance for the factory,$16,600],[$Depreciation on the factory,$2,400],[$Advertising expenses,$700]]$

Overhead is applied on the basis of direct labour hours

The budgeted manufacturing overhead for the year was $$460,000$ and the budgeted direct labour hours was $23,000$ hours

Required:

a$)$ What was the predetermined overhead rate for $2022?$

b$)$ Calculate the Cost of Goods Manufactured for $2022$ by preparing a COGM schedule

c$)$ Calculate the Cost of Good Sold for $2022$

d$)$ State whether the ending Salance of manufacturing overhead is under or overapplied and prepare the journal entry to write it off to COGS