Tahoe Company is a manufacturing firm that uses job-order costing. At the beginning of the year, the company's inventory balances were as follows:

Beginning Balance Ending Balance

Raw materials $19,000 $12,000

Work in process $82,000 $64,000

Finished goods $32,000 $47,000

The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 36,000 machine-hours and incur $216,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased, $443,000. b. Raw materials were requisitioned for use in production, $450,000 ($435,000 direct and $15,000 indirect). c. The following employee costs were incurred: direct labor, $229,000; indirect labor, $54,000; and administrative salaries, $117,000. d. Selling costs, $119,000. e. Factory utility costs, $21,000. f. Depreciation for the year was $121,000 of which $114,000 is related to factory operations and $7,000 is related to selling, general, and administrative activities. g. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 38,000 machine-hours. h. The cost of goods manufactured for the year was $910,000. i. Sales for the year totaled $1,173,000 and the costs on the job cost sheets of the goods that were sold totaled $895,000. j. The balance in the Manufacturing Overhead account was closed out to Cost of Goods Sold.

You can assume that all transactions with employees, customers, and suppliers were conducted in cash.

______ a. What is the POHR?

______ b. What is the total amount of overhead applied?

______ c. Prepare a schedule of cost of goods manufactured in good form.

______ d. Was the overhead underapplied or overapplied? By how much?

______ e. Prepare a cost of goods sold schedule for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold.

______ f. Prepare an income statement for the year in good form.