Required: 1. Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account. 2. Prepare a schedule of cost of goods manufactured (based on allocated overhead). 3. The company has decided to write off the difference between the allocated overhead and the actual overhead to cost of goods sold. Prepare a cost of goods sold schedule. 4. Prepare an income statement for the year. 5. Job 436 was one of many jobs started and completed during the year. The job required $10,000 in direct materials, and 500 hours of labour at a cost of $22 per hour. If the job contained 500 units and the company billed at 50% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer?

Southeast Company uses a job-order costing system and applies manufacturing overhead cost to jobs based on direct labour hours. For the purpose of computing the pre-determined overhead rate, the Company estimated manufacturing overhead costs to be $1,050,000 and direct labour costs to be $750,000. The budgeted labour cost was based on an average budgeted rate of $25 per hour. The following transactions took place during the year: 1. Raw material purchases totaled $675,000. 2. Raw materials requisitioned for use in production (all direct materials) totaled $650,000. 3. Utility costs incurred in the manufacturing plant were $80,000. 4. Actual direct labour costs were $840,000 based on an average actual rate of $24 per hour 5. Maintenance costs incurred in the manufacturing plant were $71,400. 6. Indirect labour costs totaled $505,000 for the year. 7. Advertising costs for the year totaled $355,700. 8. The company recorded depreciation of $245,000 for the year. 90% of the depreciation relates to manufacturing equipment. 9. The company paid $395,000 in rent for their facilities. The manufacturing plant used approximately 85% of the space in the facility. 10. Manufacturing overhead was applied to jobs during the year. 11. The cost of goods manufactured for the year was $2,700,000. 12. Sales for the year totaled $3,750,000. The unadjusted cost of goods sold for these jobs was $2,650,000. 13. Selling and administrative salaries were $426,800 for the year. 14. Miscellaneous selling and administrative costs were $80,000 for the year. 15. The balances in the inventory accounts at the beginning of the year were as follows