StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March:

	Beginning Inventory			Ending Inventory
Raw materials	$	29,100		$	26,400
Work in process		21,200			45,500
Finished goods		78,900			69,000

Additional information for the month of March follows:

Raw materials purchases	$	41,800
Indirect materials used		1,700
Direct labor		63,200
Manufacturing overhead applied		35,600
Selling, general, and administrative expenses		23,600
Sales revenue		236,400

Required: 1. Based on the above information, prepare a cost of goods manufactured report.

2. Based on the above information, prepare an income statement for the month of March.

Wheelers Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow:

Bike parts	$	340,800
Factory machinery depreciation		58,500
Factory supervisor salaries		139,000
Factory direct labor		212,963
Factory supplies		39,900
Factory property tax		34,750
Advertising cost		24,500
Administrative salaries		51,500
Administrative-related depreciation		22,200
Total expected costs	$	924,113

Required:

1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.31 per hour.

2. Determine the amount of applied overhead if 17,600 actual hours are worked in the upcoming year.