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 $1,600,500, and management budgeted 97,000 direct labor hours. Mooresville had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of August. These transactions were recorded during August: a. Purchased 7,000 square feet of oak on account at $26 per square foot. b. Purchased 250 gallons of glue on account at $36 per gallon (indirect material). c. Requisitioned 4,900 square feet of oak and 51 gallons of glue for production. d. Incurred and paid payroll costs of $229,900. Of this amount, $66,000 were indirect labor costs; direct labor personnel earned $22 per hour. e. Paid factory utility bill, $18,630 in cash. f. August's insurance cost for the manufacturing property and equipment was $4,500. The premium had been paid in March. g. Incurred $9,800 depreciation on manufacturing equipment for August. h. Recorded $2,900 depreciation on an administrative asset. i. Paid advertising expenses in cash, $6,400. j. Incurred and paid other factory overhead costs, $15,500. k. Incurred miscellaneous selling and administrative expenses, $14,750. I. Applied factory overhead to production on the basis of direct labor hours. m. Produced completed goods costing $156,000 during the month. n. Sales on account in August were $147,400. The Cost of Goods Sold was $122,000. 4. Prepare a schedule of Cost of Goods Manufactured and Cost of Goods Sold. 5. Compute the amount of overapplied or underapplied overhead that should be prorated to Work-in-Process, Finished Goods and Cost of Goods Sold. 6. Prepare the income statement for August. 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 $1,600,500, and management budgeted 97,000 direct labor hours. Mooresville had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of August. These transactions were recorded during August: a. Purchased 7,000 square feet of oak on account at $26 per square foot. b. Purchased 250 gallons of glue on account at $36 per gallon (indirect material). c. Requisitioned 4,900 square feet of oak and 51 gallons of glue for production. d. Incurred and paid payroll costs of $229,900. Of this amount, $66,000 were indirect labor costs; direct labor personnel earned $22 per hour. e. Paid factory utility bill, $18,630 in cash. f. August's insurance cost for the manufacturing property and equipment was $4,500. The premium had been paid in March. g. Incurred $9,800 depreciation on manufacturing equipment for August. h. Recorded $2,900 depreciation on an administrative asset. i. Paid advertising expenses in cash, $6,400. j. Incurred and paid other factory overhead costs, $15,500. k. Incurred miscellaneous selling and administrative expenses, $14,750. I. Applied factory overhead to production on the basis of direct labor hours. m. Produced completed goods costing $156,000 during the month. n. Sales on account in August were $147,400. The Cost of Goods Sold was $122,000. 4. Prepare a schedule of Cost of Goods Manufactured and Cost of Goods Sold. 5. Compute the amount of overapplied or underapplied overhead that should be prorated to Work-in-Process, Finished Goods and Cost of Goods Sold. 6. Prepare the income statement for August