Q.1. Rex Manufacturing had the following data for the period just ended:

Work in process, Jan. 1	$ 20,000
Work in process, Dec.31	25,000
Finished goods, Jan. 1	72,000
Finished goods, Dec. 31	65,000
Direct materials used	120,000
Direct labor	150,000
[10,000 Hrs] Factory depreciation	65,000
Sales	680,000
Advertising expense	52,000
Sales salaries expense	25,000
Utilities Factory Utilities - Admin office	27,000 3,000
Indirect materials	20,000
Indirect labor	35,000

Amortization Office Eq 20,000

Rent - Factory 50,000

- Admin 10,000

Property taxes factory 12,000 . - Admin 5,000

Manufacturing overhead is applied on the basis of direct labour hours

at $16.50 per hr

Over/Under-applied overhead is charged to Cost of good sold.

Required:

1. Calculate Rex's cost of goods manufactured.
2. Determine if overhead is over or under applied. Make the journal entry necessary to close the balance in the overhead account to Cost of Goods Sold