Smith Company manufactures lawn mowers. The firm had the following inventories.

Jan 1, 2017 Dec 3, 2017

Finished goods $142,000 $ 92,000

Work in process $262,000 $426,000

Materials $114,000 $ 90,000

The following additional manufacturing data pertains to operations.

Material purchased $150,000 Property Taxes Factory $ 7,500

Direct labor $400,000 Utilities-Factory $15,000

Depreciation-Factory Equip $ 25,000 Insurance-Factory $ 4,500

Factory Supervisor Salaries $227,500 Selling and Admin Expense $200,000

Alex Company applies manufacturing overhead at the rate of 60 percent of direct-labor cost.

Required:

Compute the following amounts for the year of 2017.

A. Alex Companys direct materials cost.

B. Alex Companys total manufacturing costs for 2017.

C. Alex Companys cost of goods manufactured.

D. Alex Companys cost of goods sold (before disposing of under/over-applied overhead).

E. Assume Alex Company wants to achieve a Gross Profit of 30% of Sales -- Compute the total dollar amount of Sales needed.

F. Show Alex Company's Income Statement

G. Was overhead under or over applied and by how much?

H. What effect, if any, will the amount in G have on net income. Explain and show the computation.

I. Why does overhead need to be applied? Explain.

J. If Alex estimated overhead for the year to be $252,000, what amount was the original estimate for direct labor cost?

Please show how you get the answers. The first two I kind of get, the rest of them are in an entirely different world.