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 $1,375,600, and management budgeted 90,500 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 5,700 square feet of oak on account at $26 per square foot. b. Purchased 120 gallons of glue on account at $36 per gallon (indirect material). C. Requisitioned 3,990 square feet of oak and 38 gallons of glue for production. d. Incurred and paid payroll costs of $202,600. Of this amount, $53,000 were indirect labor costs; direct labor personnel earned $22 per hour. e. Paid factory utility bill, $16,420 in cash. f. August's insurance cost for the manufacturing property and equipment was $3,850. The premium had been paid in March. g. Incurred $8,955 depreciation on manufacturing equipment for August. h. Recorded $2,575 depreciation on an administrative asset. i. Paid advertising expenses in cash, $5,815. j. Incurred and paid other factory overhead costs, $14,200. k. Incurred and paid miscellaneous selling and administrative expenses, $13,775. I. Applied factory overhead to production on the basis of direct labor hours. m. Produced completed goods costing $149,500 during the month. n. Sales on account in August were $135,500. The Cost of Goods Sold was $115,500. Required: 1. Compute the firm's predetermined factory overhead rate for the year. 2. Prepare journal entries to record the August events. 3. Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on August 31. 4. Prepare a schedule of Cost of Goods Manufactured and Cost of Goods Sold. 5. Prepare the income statement for August. Answer is not complete. Complete this question by entering your answers in the tabs below. Req1 Reg! Reg 2 Reg 2 Req3 Rep 3 Reg 4COM Req 4 COGS Reg 4 Cogs Req5 Reqs Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on August 31. Overapplied overhead $ 8,060 Req1 Req Req3 Req 4 COGM Req4 COGS Req5 Prepare a schedule of Cost of Goods Manufactured. Mooresville Corporation Statement of Cost of Goods Manufactured For the Month Ended August 31 Direct materials used 148,2007 Direct materials purchases Materials inventory, Beginning Total direct materials available Less: Direct materials inventory, Ending Direct materials used Direct labor-wages 3330 148,200 47,412X 100,788X 153,200X 105.853 359,841 Factory overhead applied Total manufacturing costs incurred during year Add: Work-in-process inventory, Beginning Total manufacturing costs to account for Less: Work-in-process inventory, Ending Cost of goods manufactured Actual overhead 359,841X 213,293 146.548 Total factory overhead Total applied overhead 5. Prepare the income statement for August. X Answer is not complete. Complete this question by entering your answers in the tabs below. Req1 Req 2 Req3 Req 4 COGM Req 4 COGS Req 5 Prepare a schedule of Cost of Goods Sold. Mooresville Corporation Schedule of Cost of Goods Sold For the Month Ended August 31 Finished goods inventory, beginning Cost of goods manufactured Total goods available for sale Finished goods inventory, ending Cost of goods sold Adjusted cost of goods sold 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 $1,375,600, and management budgeted 90,500 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 5,700 square feet of oak on account at $26 per square foot. b. Purchased 120 gallons of glue on account at $36 per gallon (indirect material). C. Requisitioned 3,990 square feet of oak and 38 gallons of glue for production. d. Incurred and paid payroll costs of $202,600. Of this amount, $53,000 were indirect labor costs; direct labor personnel earned $22 per hour. e. Paid factory utility bill, $16,420 in cash. f. August's insurance cost for the manufacturing property and equipment was $3,850. The premium had been paid in March. g. Incurred $8,955 depreciation on manufacturing equipment for August. h. Recorded $2,575 depreciation on an administrative asset. i. Paid advertising expenses in cash, $5,815. j. Incurred and paid other factory overhead costs, $14,200. k. Incurred and paid miscellaneous selling and administrative expenses, $13,775. I. Applied factory overhead to production on the basis of direct labor hours. m. Produced completed goods costing $149,500 during the month. n. Sales on account in August were $135,500. The Cost of Goods Sold was $115,500. Required: 1. Compute the firm's predetermined factory overhead rate for the year. 2. Prepare journal entries to record the August events. 3. Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on August 31. 4. Prepare a schedule of Cost of Goods Manufactured and Cost of Goods Sold. 5. Prepare the income statement for August. Answer is not complete. Complete this question by entering your answers in the tabs below. Req1 Reg! Reg 2 Reg 2 Req3 Rep 3 Reg 4COM Req 4 COGS Reg 4 Cogs Req5 Reqs Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on August 31. Overapplied overhead $ 8,060 Req1 Req Req3 Req 4 COGM Req4 COGS Req5 Prepare a schedule of Cost of Goods Manufactured. Mooresville Corporation Statement of Cost of Goods Manufactured For the Month Ended August 31 Direct materials used 148,2007 Direct materials purchases Materials inventory, Beginning Total direct materials available Less: Direct materials inventory, Ending Direct materials used Direct labor-wages 3330 148,200 47,412X 100,788X 153,200X 105.853 359,841 Factory overhead applied Total manufacturing costs incurred during year Add: Work-in-process inventory, Beginning Total manufacturing costs to account for Less: Work-in-process inventory, Ending Cost of goods manufactured Actual overhead 359,841X 213,293 146.548 Total factory overhead Total applied overhead 5. Prepare the income statement for August. X Answer is not complete. Complete this question by entering your answers in the tabs below. Req1 Req 2 Req3 Req 4 COGM Req 4 COGS Req 5 Prepare a schedule of Cost of Goods Sold. Mooresville Corporation Schedule of Cost of Goods Sold For the Month Ended August 31 Finished goods inventory, beginning Cost of goods manufactured Total goods available for sale Finished goods inventory, ending Cost of goods sold Adjusted cost of goods sold