MADHAV V.RAJAN Section B Preparing Manufacturing Cost Schedules We Are Leather Inc. (WAL) produces leather furniture by hand and utilizes very little automated processing. Therefore, WAL allocates Manufacturing Overhead with the Direct Labor cost driver. For current year transactions, they use prior year data to budget a predetermined MOH cost driver ratio. WAL has budgeted 2017 annual MOH costs at $600,000 and budgeted annual DL costs to be $500,000. Compute WAL's predetermined MOH allocation rate. At the end of 2016, WAL also reported the following year-end inventory balances: Raw Materials Inventory of $60,000 Work in Process Inventory of $40,000 Finished Goods Inventory of $70,000 During 2017, WAL incurred the following manufacturing costs: Purchased materials in the amount of $300,000 Requisitioned direct materials for specific job runs in the amount of $80,000. Indirect materials transferred to MOH was $20,000. Direct Manufacturing labor cost incurred was $450,000 Incurred other manufacturing overhead in the amount of $600,000 a. b. c. d. e. Allocated manufacturing overhead for 2017 based upon the predetermined MOH allocation rate from budgeted SMOH and DLS. f. Cost of manufactured, completed products $1,050,000 g. Unadjusted CGS $1,040,000. h. WAL appropriately closed out the MOH account due to an underallocation of indirect costs. Requirements: 1. Prepare a schedule for the "Cost of Goods Manufactured" in proper forn as presented on Canvas. Prepare a schedule for the "Cost of Goods Sold" in proper form as presented on Canvas. 2