Question 2) During the past year, Topsy Turfy Televisions had total revenue of $2,441,114, cost of goods sold of $807,500 (before adjustment for over- or under-applied overhead), administrative expenses of $314,055, and selling expenses of $99,454. During the year, overhead was applied using a predetermined rate of 68 percent of direct labor cost. Actual direct labor was $550,000. Actual overhead was $346,000. The ending balances in the inventory accounts (prior to adjustment for over- or under-applied overhead) are: Raw Materials Inventory Work in Process Inventory Finished Goods Inventory $ 60,000 28,500 114,000 Required (round out to 4 decimal places when doing prorate %'s & no decimal places for dollar amounts): 1) What are the balances in RM, WIP, FG, & COGS if we assume the over- or under-applied overhead is immaterial? 2) What are the balances in RM, WIP, FG, & COGS if we assume the over- or under-applied overhead is material? 3) Assume that of the $550,000 of actual direct labor, the following was in the ending balances of the related accounts: Raw Materials S0; WIP $18,700; & FG $58,200. What are the balances in RM, WIP, FG, & COGS if we assume the over- or under-applied overhead is material and prorated based on overhead allocated during the year? 4) Calculate operating income (or loss) under each of the three scenarios above (show a mini income statement for each). Mini Income Statement Format Sales -COGS -Gross Margin -Sell & Admin. - Op. Inc. (or Loss)