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 $58,600 and its total manufacturing overhead cost to be $105,480. 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 adjustment 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. 4 Required Required Required Required Required 2 3 5 Fill in the missing values in the T-accounts. Raw Materials Inventory Beginning Balance 13,800 80,900 Purchases 94,700 Ending Balance 28,600 Work in Process Inventory Beginning Balance 28,800 Direct Materials 68,100 Direct Labor $ 40,500 Applied Overhead 27,600 Ending Balance 19,200 Finished Goods Inventory Beginning Balance 41,700 Cost of Goods Completed Ending Balance 48,400 Cost of Goods Sold Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold Sales Revenue Manufacturing Overhead 11,800 301,000 Indirect Materials Applied Overhead Indirect Labor Factory Depreciation Factory Rent Factory Utilities Other Factory Costs Actual Overhead 14,500 12,400 5,300 2,600 9,700 56,300 Selling, General, and Administrative Expenses Adm. Salaries 27,700 Office Depreciation 18,400 Advertising 13,600 Ending Balance 59,700