Problem 3-14 (Static) Schedule of Cost of Goods Manufactured; Overhead Analysis (LO3-3, LO3-4] 3 Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $800,000 of manufacturing overhead for an estimated allocation base of $500,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: 10 points $ 510,000 $ 90,000 eBook References Purchase of raw materials Direct labor cost Manufacturing overhead costs: Indirect labor Property taxes Depreciation of equipment Maintenance Insurance Rent, building $170,000 $ 48,000 $ 260,000 $ 95,000 $ 7,000 $ 180,000 Raw Materials Work in Process Finished Goods Beginning $ 20,000 $ 150,000 $ 260,000 Ending $ 80,000 $ 70,000 $ 400,000 Required: 1. Compute the predetermined overhead rate for the year. 2. Compute the amount of underapplied or overapplied overhead for the year. 3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials. 4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer. 5. Assume that the $70,000 ending balance in Work in Process includes $24,000 of direct materials. Given this assumption, supply the information missing below: Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. m. Required 1 Required 2 Required 3 Required 4 Required 5 10 points Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as di materials. eBook Gitano Products Schedule of Cost of Goods Manufactured References $ Direct materials: Beginning raw materials inventory Add: Purchases of raw materials Total raw materials available 450,000 90,000 Direct materials used in production 720,000 1,260,000 Total manufacturing costs added to production Total manufacturing costs to account for Less: Ending work in process inventory Cost of goods manufactured 150,000 150,000 70,000 $ 1,340,000