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, $567,000. 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 the company $ Percentage spent in factory 50% 59% 40% Property tax Utilities Depreciation Insurance Cleaning service fee Maintenance fee 200,000 90,000 300,000 500,000 112,000 65,000 30% 50% 80% The balances of inventory follow: Beginning $ Ending $ Raw materials $8,000 $25,010 Work-in-process 7,500 572,650 Finished goods 25,010 487,810 Required: 1. Compute the predetermined overhead rate for the year. The company uses direct labor dollars 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 each of the following: a. Costs of raw materials incurred b. Labor costs incurred, all payable next month. c. Overhead applied to work-in-process inventory d. Transfer of units completed to finished goods inventory e. 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