Sampson Company uses a job order cost system with overhead applied based on direct labor hours. See estimated amounts below. Note the beginning balances for Finished Goods (Job 101) and Work-in-Process (Jobs 102 & 103) for the costs accumulated to date. Also note, the beginning balances in the other balance sheet accounts. Estimated Overhead for 2014 720,000 Estimated Direct Labor Hours for 2014 24,000 During January the company had the following transactions: (a) Purchased raw materials on account in the amount of: 10,000 (b) Issued the following materials into production: Amount Explanation Direct materials 7,000 Job 102 2,000 Job 103 5,000 Indirect materials 2,000 Used on both jobs. Total 9,000 (c) Recorded salaries and wages as follows: Amount Explanation Direct labor 10,000 Job 102 6,000 Job 103 4,000 Indirect labor 4,000 For factory supervision Salaries 5,000 For administrative staff Total 19,000 (d) Applied overhead to jobs based on the number of direct labor hours required Job Number Direct labor hours Job 102 300 Job 103 200 Total 500 (e) Recorded the following actual manufacturing costs: Amount Explanation Rent 6,000 Paid factory rent in cash Depreciation 5,000 Factory equipment Insurance 3,000 Had one month of factory insurance policy expire Utilities 2,000 Received factory utility bill but did not pay it. Total 16,000 (f) Recorded the following general and administrative costs: Amount Explanation Advertising 2,000 Advertising paid in cash Depreciation 3,000 Office equipment Other expenses 1,000 Miscellaneous expense incurred but not paid. Total 6,000 (g) Sold Job 101, which is recorded in Finished Goods: Sales Price 55,000 Cost 30,000 (h) Completed Job 102 but did not sell it; Job 103 is still in process at year-end. Required: 1 Compute the predetermined overhead rate. Predetermined overhead rate 2 Compute how much overhead would be applied to jobs during the period: Overhead applied 3 Compute the total cost of Jobs 102 and 103 at the end of the period. You will enter your calculation in the 'Ledger Accounts' tab of this workbook. Where will the cost of each of these jobs appear on the Balance sheet? 4 Post the journal entries to the 'T' Accounts in the 'Ledger Accounts' tab. Calculate the ending balances in all of the accounts. 5 Calculate the amount of over- or underapplied overhead in the 'Ledger Accounts' tab. 6 Post the journal entry in the T accounts to dispose of the overhead balance in the 'Ledger Accounts' tab. 7 Prepare a statement of cost of goods manufactured report in the 'Reports' tab. 8 Prepare an income statement in the 'Reports' tab. 9 Prepare a basic balance sheet in the 'Reports' tab.