The Pacific Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula that estimated $126,000 of manufacturing overhead for an estimated allocation base of $84,000 direct labor dollars. The company has provided the following data.

	Beginning		Ending
Raw Materials	$	21,000	$	16,000
Work in Process	$	44,000	$	40,000
Finished Goods	$	68,000	$	60,000

The following actual costs were incurred during the year:

Purchase of raw materials (all direct)	$	133,000
Direct labor cost	$	80,000
Manufacturing overhead costs:
Insurance, factory	$	7,000
Depreciation of equipment	$	18,000
Indirect labor	$	42,000
Property taxes	$	9,000
Maintenance	$	11,000
Rent, building	$	36,000

Required:
1-a.	Compute the predetermined overhead rate for the year. (Omit the "%" sign in your response.)

Predetermined overhead rate

%

1-b.	Compute the amount of underapplied or overapplied overhead for the year. (Input the amount as a positive value. Omit the "$" sign in your response.)

(Click to select)UnderappliedOverapplied overhead

$ 3000

2.	Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials. (Input all amounts as positive values. Omit the "$" sign in your response.)

Pacific Manufacturing Company Schedule of Cost of Goods Manufactured
Direct materials:
(Click to select)Raw materials inventory, beginningWork in process, beginningManufacturing overhead applied to work in processRaw materials inventory, endingWork in process, ending	$ 21,000
(Click to select)AddDeduct: (Click to select)Work in process, endingPurchases of raw materialsRaw materials inventory, endingWork in process, beginningCost of goods manufactured	133,000
Total raw materials available	154000
(Click to select)AddDeduct: (Click to select)Raw materials inventory, endingWork in process, endingPurchases of raw materialsRaw materials inventory, beginningWork in process, beginning	16,000
Raw materials used in production		$ 138000
(Click to select)Work in process, endingWork in process, beginningRaw materials inventory, endingDirect laborPurchases of raw materials		80,000
(Click to select)Purchases of raw materialsManufacturing overhead applied to work in processWork in process, endingRaw materials inventory, endingWork in process, beginning
Total manufacturing cost
(Click to select)AddDeduct: (Click to select)Purchases of raw materialsRaw materials inventory endingRaw materials inventory, beginningWork in process, endingWork in process, beginning		44,000
(Click to select)AddDeduct: (Click to select)Work in process, beginningPurchases of raw materialsWork in process, endingRaw materials inventory, endingRaw materials inventory, beginning		40000
Cost of goods manufactured		$

3-a.	Compute the unadjusted cost of goods sold for the year. (Do not include any underapplied or overapplied overhead in your cost of goods sold figure.) (Omit the "$" sign in your response.)

Unadjusted cost of goods sold

$

3-b.

Identify the options available for disposing of underapplied or overapplied overhead? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

	Underapplied or overapplied overhead may be allocated among Work in Process, Finished Goods, and Cost of Goods Sold in proportion to the overhead applied
	Underapplied or overapplied overhead may be closed directly to Finished Goods
	Underapplied or overapplied overhead may be allocated between Work in Process and Finished Goods
	Underapplied or overapplied overhead may be allocated between Finished Goods and Cost of Goods Sold in proportion to the overhead applied
	Underapplied or overapplied overhead may be closed directly to Work in Process
	Underapplied or overapplied overhead may be closed directly to Cost of Goods Sold
	Underapplied or overapplied overhead may be allocated between Work in Process and Cost of Goods Sold in proportion to the overhead applied

4.

Job 137 was started and completed during the year. What price would have been charged to the customer if the job required $3,200 in materials and $4,200 in direct labor cost, and the company priced its jobs at 40% above the jobs cost according to the accounting system? (Omit the "$" sign in your response.)

Price to customer

$

5.	Direct labor made up $8,000 of the $40,000 ending Work in Process inventory balance. Supply the information missing below (Omit the "$" sign in your response):

Direct materials	$
Direct labor		8,000
Manufacturing overhead
Work in process inventory	$	40,000