S 2-10 (Algo) Computing predetermined overhead rate LO P3 At the beginning of the year, a company estimates total direct materials costs of $920,000 and total overhead costs of $1,180,000. If the company uses direct materials costs as its activity base to apply overhead, what is the predetermined overhead rate it should use during the year? Numerator Predetermined overhead.rate Denominator: Rate Rate M Inventories Raw materials Work in process Finished goods period $ 48,000 9,600 69,000 End of Period $ 50,000 18,800 33,800 $ 180,000 250,000 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs 57,500 91,500 Exercise 2-12 (Algo) Computing materials, labor, overhead, and cost of goods manufactured LO P1, P: P3, P4 1. In the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along with purchases and indirect materials used. Solve for direct materials used in the period. 2. Compute the cost of direct labor used for the period. 3. In the Work in Process Inventory T-account, insert amounts for beginning and ending balances along with direct materials used (from part 1), direct labor used (from part 2), and applied overhead. Solve for cost of goods manufactured in the period. 4. In the Finished Goods Inventory T-account, Insert amounts for beginning and ending balances along with cost of goods manufactured (from part 3). Solve for cost of goods sold in the period (do not consider any under- or overapplied overhead). 5. In the Factory Overhead T-account, insert amounts for indirect materials used, indirect labor used, other overhead costs, and applied overhead. Solve for underapplied or overapplied overhead. Complete this question by entering your answers in the tabs below. Required 134 and 5 Required 2 1. In the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along with purchases and indirect materials u 3. In the Work in Process Inventory T-account, insert amounts for beginning and ending balances along with direct materials used (from part goods manufactured in the period. 4. In the Finished Goods Inventory T-account, insert amounts for beginning and ending balances along with cost of goods manufactured (from under- or overapplied overhead). 5. In the Factory Overhead T-account, insert amounts for indirect materials used, indirect labor used, other overhead costs, and applied overh Beginning Ending Raw Materials Inventory Beginning inding Ending Ending Work in Process I 3 the Work in Process Inventory T-account, insert amounts for beginning and ending balances with dec dom pant direct or used from 21 and pled shed Goods inventory Taccount insert amounts manufactured them pen 33 Solve for cost of goods 3. the Factory Overhead Teccount, inset amounts soped overnead Sove for underapped or overled Selver dending band goods man under Fachery Ovirhead t ring Finished goods 69,000 33,800 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs $ 180,000 250,000 9.000 57,580 91,500 Exercise 2-12 (Algo) Computing materials, labor, overhead, and cost of goods me P3, P4 1. In the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along wit materials used. Solve for direct materials used in the period. 2. Compute the cost of direct labor used for the period. 3. In the Work in Process Inventory T-account, insert amounts for beginning and ending balances along w (from part 1), direct labor used (from part 2), and applied overhead. Solve for cost of goods manufactured 4. In the Finished Goods Inventory T-account, insert amounts for beginning and ending balances along v manufactured (from part 3). Solve for cost of goods sold in the period (do not consider any under- or ove 5. In the Factory Overhead T-account, insert amounts for indirect materials used, indirect labor used, othe applied overhead. Solve for underapplied or overapplied overhead. Complete this question by entering your answers in the tabs below. Required 1 3 4 and 5 Required 2 Compute the cost of direct labor used for the period. The cost of direct labor for the period Cost of direct labor used