Mooresville Corporation manufactures reproductions of eighteenth$-$century, classical$-$style furniture. It uses a job costing system that applies factory overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $$1,547,00,$ and management budgeted $95,500$ direct labor hours. Mooresville had no Materlals, Work$-$In$-$Process, or Finished Goods Inventory at the beginning of August These transactions were recorded during August

a$.$ Purchased $6,700$ square feet of oak on account at $$26$ per square foot

b$.$ Purchased $220$ gallons of glue on account at $$36$ per gallon $($Indirect material$).$

c$.$ Requisitioned $4,690$ square feet of oak and $48$ gallons of glue for production.

d$.$ Incurred and pald payroll costs of $$223,600.$ Of this amount, $$63,000$ were indirect labor costs; direct labor pers$$nnel earned $$22$ per hour.

e$.$ Pald factory utility bill, $$18,120$ In cash.

f$.$ August's insurance cost for the manufacturing property and equipment was $$4,350.$ The premlum had been pald in March.

g$.$ Incurred $$9,605$ depreclation on manufacturing equipment for August.

h$.$ Recorded $$2,825$ depreclation on an administrative asset.

I. Pald advertising expenses in cash, $$6,265.$

J$.$ Incurred and pald other factory overhead costs, $$15,200.$

k$.$ Incurred miscellaneous selling and administrative expenses, $$14,525.$

I. Applied factory overhead to production on the basis of direct labor hours.

m$.$ Produced completed goods costing $$154,500$ during the month.

n$.$ Sales on account In August were $$145,400.$ The Cost of Goods Sold was $$120,500.$

Required:

Compute the firm's predetermined factory overhead rate for the year.

$2$ Prepare journal entrles to record the August events.

Calculate the amount of overapplied or underapplled overhead to be closed to the Cost of Goods Sold account on August $31.$

Prepare a schedule of Cost of Goods Manufactured and Cost of Goods Sold.

Compute the amount of overapplled or underapplied overhead that should be prorated to Work$-$In$-$Process, Finlshed Goods and Cost of Goods Sold.

Prepare the Income statement for August.