Management wishes to determine various unknown balances of a job order company specializing in custom-built industrial equipment, and has hired you for assistance: Jan.1.2004 De. 31, 2004 Account balances Materials inventory Work in process inventory Finished goods inventory Manufacturing overhead (actual) Accounts payable-production materials Cost of goods sold $ 205,000 68,550 "Before prorating the overhead adjustment Date started October 15, 2003 December 17, 2003 31,000 0 16,000 0 Job Number 206 217 $ Accounts payable are for production materials only. On January 1, 2004, there were two jobs in process, as follows: Direct labor costs incurred Direct materials costs transferred to Finished ? ? Direct material $14,200 $6,500 $20,700 On December 31, 2004, there was only one job in process, Job No.372. However, the only available information on the job was the accumulated direct labor costs of $12,000 and direct materials of $21,900. Overhead is applied to jobs as a predetermined percentage of direct labor costs. The following additional information is available to you about events in 2004: Payments made to suppliers in 2004 Indirect materials issued from inventory Goods Inventory this period Current period applied overhead in ending Finished Goods Inventory, December 31, 2004 65,000 247,000 24,000 769,650" $342,000 $14,000 $140,000 $403,800 $30,000 Direct labor $8,400 $9,000 $17,400 Required 1. Cost of materials purchased. 2. Direct materials issued to work in process inventory. (Hint. Consider how much was transferred out of work in process to finished goods.) 3. Materials Inventory account balance, December 31, 2004. 4. Overhead application rate. 5. Overhead applied to work in process inventory account during 2004. 6. Over- or underapplied overhead. 7. Cost of goods transferred to Finished Goods Inventory account during 2004. 8. Work in process inventory account, December 31, 2004. 9. Applied overhead in ending work in process inventory account, December 31, 2004. 10. Proration of over- or underapplied overhead to Work In Process Inventory account, Finished Goods Inventory account and Cost of Goods Sold account. 11. Balance in ending Work in Process Inventory Account, December 31, 2004, after prorating overhead to inventory accounts and cost of goods sold account. _______