What would be the effect of writing off under- and overallocatd t be reasonable for Premier Golf Carts to change to this simpler 3. er relationships, under- and overallocation. (S. Sridhar, adapted) Southwick Company so-costing system. Partially completed T-accounts and additional information for 4-37, General ledger uses normal costing in its 4- co tw Southwick for 2014 are as follows Finished Goods Control Direct Materials Control 1-1-2014 10,000 880,000 925,000 Work-in-Process Control 1-1-2014 25,000 234,000 1-1-2014 44,000 Dir. manuf labor 240,000 348,000 Cturi ng Overhead Control Manufacturing Overhead Allocated Cost of Goods Sold 514,000 Additional information follows a. Direct manufacturing labor wage rate was $12 per hour b. Manufacturing overhead was allocated at $16 per direct manufacturing labor-hour c. During the year, sales revenues were S1,050,000, and marketing and distribution costs were $125,000 1. What was the amount of direct materials issued to production during 2014? 2. What was the amount of manufacturing overhead allocated to jobs during 2014 3. What was the total cost of jobs completed during 2014? Required 4. What was the balance of work-in-process inventory on December 31, 2014? 5. What was the cost of goods sold before proration of under-or overallocated overhead? 6. What was the under- or overallocated manufacturing overhead in 2014? 7. Dispose of the under-or overallocated manufacturing overhead using the following a. Writeoff to Cost of Goods Sold b. Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold 8. Using each of the approaches in requirement 7, calculate Southwick's operating incom: for 2014. 9. Which approach in requirement 7 do you recommend Southwick use? Explain your ansver briefly 4-38 Qverview of neneral ladoer relationehine RrodC