Zhang Corp. designs and manufactures basketball jerseys for high school sports teams. Since each team's

uniform is unique in color and design, Zhang uses a job order costing system.

On January $1,$ the beginning balances in the following account were as follows:

Raw Materials Inventory: $$59,400$

Work in Process Inventory: $$25,500$

Finished Goods Inventory: $$34,600$

During the vear, the following events occurred:

Zhang purchased raw materials costing $$114,000.$

Zhang used $$149,300$ of raw materials in production. Of these, $80\%$ were classified as direct materials and

$20\%$ as indirect materials. $($Zhang maintains a single Raw Materials Inventory account.$)$

Zhang used $31,200$ hours of direct labor. The company's average direct labor rate was $$11\mathrm{.}00$ per hour.

The company's indirect labor cost was $$168,000.$

Other manufacturing overhead costs the company incurred on account totaled $$98,400.$

Zhang applied $$316,800$ in manufacturing overhead.

The company completed production of goods costing $$795,400.$

The company sold $$801,300$ worth of goods.

Requirements:

Prepare a T Account for Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory,

Cost of Good Sold and Manufacturing Inventory $($do not forget to calculate your ending inventory

balance in each account$)$

Calculate under$-$or overapplied overhead for the year. $$20,540$

Assuming that the under$-$or overapplied overhead to is an insignificant amount, calculate the adjusted

Cost of Goods Sold for the year. MOH $$20,540$

ADJUSTED

COGS$)$

COGS $$20,540$

Instead, assume that the under$-$ or overappliedoverhead is a significant amount. Calculate the

adjusted Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold balances for the

year. Round percentages to $3$ decimal places and dollars to whole dollars. $($Hint: use the COGS balance

from requirement $1$ in this calculation, not the adjusted balance you calculated in requirement $3).$