Y Company reported the following actual costs data for the year:

Purchases of raw materials (all direct) $200,000

Direct labour (average hourly rate of $20) 320,000

Manufacturing overhead costs 100,000

Change in inventories:

Increase in raw materials $20,000

Increase in work in process 16,000

Decrease in finished goods 32,000

Y Company used a predetermined overhead rate based on direct labour hours. Estimated annual manufacturing overhead cost and direct labour hours were $150,000 and 20,000, respectively.

Required:

1) What was the pre-determined manufacturing overhead rate?

2) Calculate the cost of goods manufactured. 3) What was the cost of goods sold before adjusting for any under or overapplied overhead?

4) By how much was manufacturing overhead cost under or overapplied? 5) Prepare a summary journal entry to close any under or overapplied manufacturing overhead cost to cost of goods sold.