Required P3-16 Schedule of Cost of Goods Manufactured; Pricing; Work in Process Analysis The Pacific Manufacturing Company operates a job-order cost system and ap- plies overhead cost to jobs on the basis of direct labor cost. In computing an overhead rate for the year, the company's estimates were: manufacturing overhead cost, $126,000; and direct labor cost. $84,000. The company's inventory accounts at the beginning and end of the year were as follows: Raw Materials Work in Process Finished Goods January 1, (beginning of year) December 31, (end of year) $16,000 44,000 40,000 68,000 60,000 $21,000 The following actual costs were incurred during the year: Purchase of raw materials (all direct) $133,000 Direct labor cost.. Manufacturing overhead costs: Insurance, factory Depreciation of equipment Indirect labor Property taxes. Maintenance Rent, building 1. a. Compute the predetermined overhead rate for the year. 80,000 7,000 18,000 42,000 9,000 11,000 36,000 b. Compute the amount of under- or overapplied overhead for the year. Systems Design: Job-Order Costing 125 2. Prepare a schedule of cost of goods manufactured for the year. 3. Compute the cost of goods sold for the year. (Do not include any under- or overapplied overhead in your cost of goods sold figure.) What options are available for disposing of under- or overapplied overhead? 4. Job 137 was started and completed during the year. What price would have been charged to the customer if the job required $3,200 in materials and $4,200 in direct labor cost, and the company priced its jobs at 40% above cost to manufacture? 5. Direct labor made up $8,000 of the $40,000 ending Work in Process inventory balance. Supply the information missing below: Direct materials... Direct labor. Manufacturing overhead Work in process inventory 8,000 $40,000