Question 1 A company had the following transactions and events during its first year of operations. Estimated overhead for the year was $770,000; estimated direct labor cost for the year was $350,000 a. Purchased raw materials on account, S567.000. b. 12 percent of raw materials purchased was requisitioned as indirect materials. c. Direct labor for production is $331,000 indirect labor is $125.000 d. Other costs for Total Percentage the company $ spent in factory Property tax 200,000 50% Utilities 90.000 59% Depreciation 300,000 40% Insurance 500.000 30% Cleaning service for 112,000 50% Maintenance fee 65,000 80% The balances of inventory follow Beginning Ending Ending S S Raw materials Work-in-process Finished goods $8,000 7.500 25.010 $25,010 572.650 487.810 Required: 1. Compute the predetermined overhead rate for the year. The company uses direct labor doltars as the allocation base 2. Compute the amount of underapplied or overapplied overhead for the year. 3. Prepare a schedule of cost of goods manufactured for the year. 4. Prepare a schedule of cost of goods sold, 5. Prepare a journal entry to record cach of the following: a. Costs of raw materials incurred Labor costs incurred, all payable next month. c. Overhead applied to work-in-process inventory d. Transfer of units completed to finished goods inventory c. Adjustment of overapplied or underapplied overhead to cost of goods sold. f. Adjustment of overapplied or underapplied overhead proportionally to cost of goods sold, Work-in-process inventory and Finished goods inventory