[LO 3-4] 3-55 Cost of Goods Manufactured; Income Statement The following data pertain to Babc Company for the fiscal year ended December 31: Prior December 31 Purchases of materials Direct labor Indirect labor Factory insurance Depreciation-factory Repairs and maintenance-factory Marketing expenses General and administrative expenses Materials Inventory Work-in-Process Inventory Finished Goods Inventory Current December 3 $165,000 114,000 45,000 8,000 33,000 11,000 144,000 86,000 55,000 16,000 24,000 $23,000 13,000 17,000 Sales in the current year were $625,000. Required Prepare a schedule of cost of goods manufactured and an income statement for the current for Babor Company similar to those in Exhibit 3.15A. Utilities Depreciation Insurance Total $ 3.000 18.000 2,500 $23.500 e. Factory overhead costs were applied to jobs at the predetermined rate of $46 per machine hour. Job X incurred 1.100 machine hours: Job Y used 800 machine hours. f. Job X was completed; Job Y was still in process at the end of March. The company closed the overapplied or underapplied overhead to the Cost of Goods Sold account at the end of March Required 1. Calculate the total manufacturing cost for Job X and Job Y for March 2. Calculate the amount of overapplied or underapplied overhead and state whether the cost of Goods Sold account will be increased or decreased by the adjustment. [LO 4-3, 4-4, 4-5] 4-45 Application of Overhead The following information is for Punta Company for July: a. Factory overhead costs were applied to jobs at the predetermined rate of $42.50 per labor hour. Job Sincurred 6,175 labor hours: Job T used 4,275 labor hours. b. Job S was shipped to customers during July. c. Job T was still in process at the end of July. d. The overapplied or underapplied overhead to the Cost of Goods Sold account was closed at the end of July