Question 7: Normal costing Time: 20 minutes Total: 12 marks The following costs are attributed to the Quilt Company: Purchase of raw materials (all direct) $296,000 Direct labour cost $141,600 Manufacturing overhead costs $166,260 Inventories: Beginning raw materials $9,000 Ending raw materials $8,000 Beginning work in process $20,000 Ending work in process $15,600 Beginning finished goods $20,000 Ending finished goods I $5,600 Quilt Company used a 120% predetermined overhead rate based on direct labour cost. Required: a. Calculate the cost of goods manufactured. (6 marks) b- What was the cost of goods sold before adjusting for any under or over applied overhead? (2 marks) C- Was the overheard overapplied or underapplied and by how much? (2 marks) D Indicate if the disposition of the over/underapplied will be a debt or a credit to the GOGS? (2 marks)