Required Information [The following information applies to the questions displayed below] Finlon Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-In-process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800 There was no finished goods Inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, In terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20*2 for direct labor and manufacturing overhead are $4,200,000 and $5,544,000, respectively. Actual results for the year follow. Direct material used $ 5, 500, 000 Direct labor 4,350,000 Indirect material used 64,000 Indirect labor 2, 860 ,000 Factory depreciation 1, 740 , 000 Factory insurance 59,000 Factory utilities 828,000 Selling and administrative expenses 2 , 160 , 000 Total $17 , 561, 000 Job no. 2077 was completed in January 20*2; there was no work In process at year-end. All jobs produced during 20x2 were sold with the exception of job no. 2143, which contained direct-material costs of $154,000 and direct-labor charges of $85,000. The company charges any under- or overapplied overhead to Cost of Goods Sold. Required: 1. Determine the company's predetermined overhead application rate. Predetermined overhead rate 9%[The following information applies to the questions displayed below. } Finlon Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-In-process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost Is the company's practical capacity, In terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20*2 for direct labor and manufacturing overhead are $4,200,000 and $5,544,000, respectively. Actual results for the year follow. Direct material used $ 5,500,000 Direct labor 4, 250,000 Indirect material used 64,000 Indirect labor 2, 860 ,000 Factory depreciation 1, 740 , 000 Factory insurance 59,000 Factory utilities 826 ,000 Selling and administrative expenses 2 , 160 , 000 Total $17 , 561, 000 Job no. 2077 was completed in January 20%2: there was no work In process at year-end. All jobs produced during 20x2 were sold with the exception of job no. 2143, which contained direct-material costs of $154,000 and direct-labor charges of $85,000. The company charges any under- or overapplied overhead to Cost of Goods Sold. 2. Determine the additions to the Work-In-Process Inventory account for direct material used, direct labor, and manufacturing overhead. Additions to the work-in-process inventory3. Compute the amount that the company would disclose as finished goods Inventory on the December 31, 20*2, balance sheet. Finished-goods inventoryJournal entry worksheet Record transfer of job cost from work in process to finished goods inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry view general journal5-a. Compute the amount of under- or overapplied overhead at year-end. 5-b. Prepare the necessary journal entry to record its disposition. Complete this question by entering your answers in the tabs below. Req 5A Req 5B Compute the amount of under- or overapplied overhead at year-end. Req 5A Req 58 Prepare the necessary journal entry to record its disposition. (If no entry is required for a transaction entry required" in the first account field. ) view transaction list Journal entry worksheet Record under- or over applied overhead. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry view general journal6. Determine the company's 20*2 cost of goods sold. Finished-goods inventory, Jan. 1 Cost of goods available for sale Unadjusted cost of goods sold Cost of goods sold7. Would it be appropriate to include selling and administrative expenses in either manufacturing overhead or cost of goods sold? O Yes O No