6. ZECO is a company that produces fire trucks. The company uses a normal job-order costing system to calculate its cost of goods manufactured. The company's policy is to price its job at cost plus 30% markup. On January 1, 2020, there was only one job in process, with the following costs: Direct materials Direct labour Applied overhead Total Job 200 $13,500 18,000 27,000 $58,500 The following balances were taken from the company's general ledger as of January 1, 2020: Direct materials inventory $45,000 Finished goods inventory (for Job 100) 85,000 During the year 2020, the following events occurred: Direct materials were purchased on account for $375,000. Two more jobs were started: Job 300 and Job 400. Direct materials and direct labour costs incurred by each job in process during the year 2020 were as follows: Job 200 Job 300 Job 400 Direct materials $150,000 $45,000 $35,000 Direct labour 130,000 45,000 25,000 The company incurred the following actual factory overhead during the year: $135,000 55,500 85,750 Factory rent Factory supplies Indirect labour Jobs 100 and 200 were sold. Jobs 200 and 300 were completed. Instructions: a. Calculate the total applied overhead for the year 2020. The factory overhead costs are applied to each job on the basis of direct labour dollars. b. Determine whether the overhead is over-applied or under-applied. By how much? [3] [2] c. Prepare a schedule of cost of goods sold, identifying both normal and adjusted cost of goods sold, for the year ended December 31, 2020. [5]