Requirement 2 and 3

Wallis Company manufactures only one product and uses a andard con system The company uses a predetermined plantwide overhead tate that relles on direct labor hours as the allocation base. All of the company's manufacturing overhead costs are fed- does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,884,000 of fixed manufacturing overhead for an estimated allocation base of 288.400 directibor hours Wallis does not maintain any beginning or ending work in process inventory The company's beginning balance sheet is as follows als company Balance Sheet 1/1/ (dollar in thousands) Assets Cash $ 40 materials inventory In shed coods Inventory 310 Froperty, blant and equipment, het Total asset Liabilities and Equi Retained earnings 1.10.140 Total lities and 110,140 19 The company's standard cost card for its only product is as follows Inaute Direct materiale Direct labor Fred manufacturine overhead Total standard cost per unit (2) Standard Quantity Price or Hours or Rate 2 ponde 300 per pound 5.00 hours $14.20 per hour 3.09 hours $10.00 per hour Standard cost (2) 1.60 42.00 30.00 $133.60 During the year Wallis completed the following transactions a 6. Added 216,000 pounds of raw material to work in process to produce 95.400 units Assigned direct labor costs to work in process. The direct laborers who were paid in cash) worked 245 800 hours at an average cost of $16.00 per hour to manufacture 95,400 units