The American Maritime Supply Company uses normal job-order costing in its only department. The company charges overhead based on direct labor cost. The estimated overhead cost for 2021 was $225,000 and the estimated direct labor cost was $75,000. The Materials Control account includes both direct and indirect materials. The beginning Materials Control for 2021 was $7,500. The beginning Work in Process Control for 2021 was $5,000 (all charged to Job AAA). The beginning Finished Goods Control for 2021 was $80,000 and consisted of 8,000 units of Job ZZ that cost $10 each. The following direct costs were charged to jobs during 2021. Job AAA Job BBB Job CCC Job DDD Direct Materials Cost $20,000 $14,500 $25,000 $12,900 Direct Labor Cost $20,000 $18,500 $40,000 $10.500 The total cost of all materials purchased in 2021 was $95,000. The actual overhead cost incurred in 2021 was $275,000, $14,000 of which was for indirect materials. Job AAA, Job BBB, and Job CCC were completed during 2021. Job AAA consisted of 5,000 units; Job BBB consisted of 10,000 units, and Job CCC consisted of 5,000 units. During 2021, the company sold 6,000 units of Job Zz, all 5,000 units from Job AAA, 6,000 units from Job BBB, and 3,000 units from Job CCC. The total Sales Revenue for 2021 was $460,000 and the total Selling & Administrative Expenses were $115,900 for the year. 1. a. b. 2. 3. 4. Compute the amount of underallocated or overallocated overhead for the year. Label it as either underallocated or overallocated overhead Prepare, in good form, a Schedule of Cost of Goods Manufactured for the year ending December 31, 2021. YOU WILL NEED TO INCLUDE A PROPER HEADING ON YOUR SCHEDULE. Prepare, in good form, an Income Statement for the year ending December 31, 2021 YOU WILL NEED TO INCLUDE A PROPER HEADING ON YOUR FINANCIAL STATEMENT Prorate the under or overallocated overhead for 2021 based on the total ending balances in the appropriate accounts. Please create the table we discussed in class. Prorate again, using the more most theoretically correct method. Use the same structure as you did in number four for your allocation table. Using actual costing, what would be the overrate rate? Please show the numerator and denominator of the calculation What would be the actual OH Cost assigned to Job DDD? Compute the adjusted amount of overhead in WIP using the theoretically correct method used in problem 5. 5. 6. 7. 8. 9. 10. Compare your answers in question 7 and question 8. Are the answers identical? Should they be identical? Now, using the most accurate method of "deal: with the under or overallocated overhead. This was our Method 3. Prepare a table showing your calculations of prorated overhead to each of the three accounts: WIP,FG, and COGS 11. Prepare the journal entry that we would use to reconcile the accounts in preparation of financial statement compilation based for the method in requirement 4. You do not need to prepare a new set of financial statements using this method