The following inventory information comes from the accounts of Markoff Industries for the month ended August 31, 2021:

The following debit and credit entries were made to general ledger accounts during the month:

Dr. Cr.

Sales Revenue 1,200,000

Direct materials 300,000

Direct labor 80,000

Selling & Admin. Expenses 120,000

Cash receips 1,000,000

Overhead control 175,000

General ledger balances as of Aug. 1 and Aug. 31 were as follows:

Aug. 1 Aug. 31

Direct materials 300,000 250,000

Work in process 100,000 85,000

Finished goods 400,000 260,000

The company uses normal costing and applied overhead at the rate of150% of direct labor cost.

QUESTIONS - PLEASE SHOW CALCULATIONS

Compute the following:

1) Direct materials used in production

2) Applied overhead for August:

3) Normal cost of goods sold

4) Misapplied overhead

$___________________________

indicate amount and whether over or under applied

5) Cost of goods sold as per GAAP is:

6) Gross profit, as shown on the income statement prepared in accordance with GAAP

7) Income from operations