Walworth Company uses normal costing in its job-costing system. Partially completed T-accounts and additional information for WalworthWalworth for 2017 are as follows:

Direct Materials Control Work-in-Process Control Finished Goods Control

1-1-2017 46,000 234000 1-1-2017 44,000 10000 880000

131000 Direct Manuf 925,000

Labor 348000

Manufacturing Overhead Control Manufacturing Overhead Allocated Cost of Goods Sold

514,000

a.	Direct manufacturing labor wage rate was $12per hour.
b.	Manufacturing overhead was allocated at $16 per direct manufacturinglabor-hour.
c.	During the year, sales revenues were $1,050,000, and marketing and distribution costs were $123,000.

Requirements

1. What was the amount of direct materials issued to production during 2017?

2. What was the amount of manufacturing overhead allocated to jobs during 2017?

3. What was the total cost of jobs completed during 2017?

4. What was the balance of work-in-process inventory on December 31,2017?

5.What was the cost of goods sold before proration of under- or overallocatedoverhead?

6.What was the under- or overallocated manufacturing overhead in 2017?

7.Dispose of the under- or overallocated manufacturing overhead using thefollowing:

a.Write-off to Cost of Goods Sold

b.Proration based on ending balances (before proration) inWork-in-Process Control, Finished Goods Control, and Cost of Goods Sold

8.Using each of the approaches in requirement 7, calculate Walworth's operating income for 2017.

9.Which approach in requirement 7 do you recommend Walworth use? Explain your answer briefly.