Moore Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). All materials are classified as direct materials. In computing a predetermined overhead rate at the beginning of the year, the companys estimates were: manufacturing overhead cost, $800,000; and direct materials to be used in production, $500,000. The company has provided the following data in the form of an Excel worksheet:

	Beginning	Ending
Raw Materials	$20,000	$80,000
Work in Process	$150,000	$70,000
Finished Goods	$260,000	$400,000
The following actual cost were incurred during the year
Purchase of raw materials (All direct)		$510,000
Direct labor cost		$90,000
Manufacturing overhead cost		$170.000
Indirect labor		$48,000
Property taxes		$260,000
Depreciation of equeipment		$95.000
Maintenance		$7,000
Insurance		$180,000
Rent, building

Required:

1. a. Compute the predetermined overhead rate for the year. (2 marks)

b. Compute the amount of underapplied or overapplied overhead for the year.(3 marks)

2. Prepare a schedule of cost of goods manufactured for the year.

(Marking Scheme: Computation of Direct materials = 2 Marks, Total Manufacturing Costs = 2 Marks, Cost of Goods Manufactured = 2 Marks, Total = 6 Marks)

3. Compute the Cost of Goods Sold for the year. (Do not include any underapplied or overapplied overhead in your Cost of Goods Sold figure.)

(Marking Scheme: Computation of goods available for sale = 2 Marks, Total Cost of Goods Sold = 2 Marks, Total = 4 Marks)