The Pendley Company uses a normal job cost order system.....

units. During the year, the compall) expenses: Indirect labor.. $,000 Indirect materials (supplies).. 4,000 Depreciation-plant and equipment... 3,000 Insurance-plan... 2 Property taxe Utilities 2,000 3,000 5,000 Required: (1) Calculate the predetermined overhead rate. (2) Prepare journal entries for manufacturing overhead. (3) Close any under- or overapplied overhead to cost of goods sold 5-19 Computation o f Under- or Overapplied Overhead he Pendley Company uses a normal job order cost system. Manufacturing overhead is applied at $2 per direct labor hour. The results of operation for the current period are Direct labor cost (100,000 hours @ $6.00) $600,000 50,000 .400,000 40,000 Utilities used in factory. 100,000 Indirect supplies used. Cost of goods sold.800,000 100,000 Finished goods (ending) The company has no beginning inventory in work-in-process or fini shed goods. Required (1) Determine the amount of under- or overapplied overhead for th (2) Compute the ending inventory in work-in-process eperiod