LO 2-3, 2-4, 2-5, 2-6 PA2-8 Recording Manufacturing Costs, Preparing a Cost of Goods Manufactured Report, and Calculating Income from Operations Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $65,000 and its total manufacturing overhead cost to be $91,000. Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow: Raw Materials Inventory Beginning Balance 15,000 ? Purchases 95,000 Ending Balance 30,000 Finished Goods Inventory 40,000 ? ? Beginning Balance Cost of Goods Completed Ending Balance 50,000 Work in Process Inventory Beginning Balance Direct Materials Direct Labor Applied Overhead Ending Balance Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold 30,000 ? 70,000 $50,000 ? 20,000 Cost of Goods Sold ? Manufacturing Overhead Indirect Materials 10,000 ? Indirect Labor 15,000 Factory Depreciation 13,000 Factory Rent 7,000 Factory Utilities 3,000 Other Factory Costs 10,000 Actual Overhead 58,000 Applied Overhead CHAPTER 2 Job Order Costing 99 Sales Revenue 300,000 Selling, General, and Administrative Expenses Adm. Salaries 28,000 Office Depreciation 20,000 Advertising 15,000 Ending Balance 63,000 Required: 1. Calculate the predetermined overhead rate. 2. Fill in the missing values in the T-accounts. 3. Compute over- or underapplied overhead. 4. Prepare a statement of cost of goods manufactured. 5. Prepare an income statement, including an adjustment to cost of goods sold for the over/ underapplied manufacturing overhead