You have been given the following information concerning Gliere Companys manufacturing operations for the month ending January 31, 20X1.

(a) Balances in the inventory accounts as of 1/1/X1 were as follows: finished goods, $25,000; and direct materials, $20,000.

(b) Manufacturing overhead is applied to production on the basis of direct labor cost. The companys predetermined overhead rate for 20X1 is that manufacturing overhead would be 125% of direct labor cost.

(c) The only job that remained incomplete as of 1/31/X1 was Job 626, on which there were direct materials of $20,000 charged and $3,000 of direct labor charged.

(d) Total direct materials requisitioned into production during January amounted to $160,000. Total direct labor hours worked in January were 3,000 at an hourly rate of $12 per hour.

(e) Cost of goods completed during January was $250,000.

(f) The balance in the direct materials inventory at the end of January is $28,000. The ending balance in finished goods inventory at the end of January is $22,000.

(g) Actual manufacturing overhead incurred during the period amounted to $55,000.

REQUIRED: (1) Set up T accounts for the following accounts listed below and enter all the information for those accounts based upon the data given in the problem.

Direct Materials Inventory Manufacturing Overhead Control

Work in Process Inventory Cost of Goods Sold

Finished Goods Inventory

(2) Determine the following amounts based upon your T accounts and other computations required. Show all computations made. Round all answers to the nearest whole dollar.

(a) Direct materials purchases.

(b) Work in process inventory balance on 1/1/X1.

(c) Cost of goods sold for the month.

(d) Over- or underapplied manufacturing overhead.