PA2-8 (Algo) Recording Manufacturing Costs, Preparing a Cost of Goods Manufactured Report, and Calculating Income from Operations [LO 2-3, 2-4, 2-5, 2-6] Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $51,200 and its total manufacturing overhead cost to be $76,800. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required: 1. Calculate the predetermined overhead rate. 2. Fill in the missing values in the T-accounts. 3. Compute over- or underapplied overhead. 4. Prepare a statement of cost of goods manufactured and sold including the adjustmer for over- or underapplied overhead. 5. Prepare a brief income statement for the company. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate the predetermined overhead rate. Predetermined Overhead Rate % of Direct Labor Cost Beginning Balance Purchases Ending Balance Raw Materials Inventory Debit Credit Debit Beginning Balance Cost of Goods Completed Ending Balance 14,900 93,200 29,100 Finished Goods Inventory 41,000 49,800 Sales Revenue Debit Work in Process Inventory Debit Credit Beginning Balance Direct Materials Direct Labor 29,000 69,600 40,800 Applied Overhead Ending Balance 19,700 Cost of Goods Sold Credit Debit Credit Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold Manufacturing Overhead Credit Debili Credit 307,000 Indirect Materials 9,400 Applied Overhead Indirect Labor 14,500 Factory Depreciation 12,700 Factory Rent 6,000 Factory Utilities 1,000 Other Factory Costs 9,000 Actual Overhead 53,500 Selling, General, and Administrative Expenses Debit Administrative Salaries 27,600 al Credit Selling, General, and Administrative Expenses Debit Credit Administrative Salaries 27,600 Office Depreciation 18,200 Advertising 14,200 Ending Balance 60,000 < Required 1 Required 1 Required 2 Required 3 Required 4 Required 5 Compute over- or underapplied overhead. Manufacturing Overhead Required 2 Required 4 > DOBSON MANUFACTURING COMPANY Cost of Goods Manufactured and Sold Report Direct Materials Used in Production Total Current Manufacturing Costs Total Work in Process Cost of Goods Manufactured Cost of Goods Available for Sale Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold < Required 3 Required 5 Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a brief income statement for the company. DOBSON MANUFACTURING COMPANY Income Statement Net Income from Operations