The following T-accounts represent manufacturing cost flows for Kanton Manufacturing Company for the year 2000

\begin{tabular}{l|r|r}

& Direct Materials Inventory \\

\hline $1 / 1$ & 70,000 & 250,000 \\

& 210,000 & \\

\hline $12 / 31$ & 30,000 & \\

& &

\end{tabular}

\begin{tabular}{lr|r}

\multicolumn{3}{c}{ Work-in-Process Inventory } \\

\hline $1 / 1$ & 80,000 & 700,000 \\

& 250,000 & \\

& 310,000 & \\

& 140,000 & \\

\hline $12 / 31$ & 80,000 &

\end{tabular}

Finished Goods Inventory

\begin{tabular}{r|r|r|r}

\hline $1 / 1$ & 90,000 & 740,000 & 30,000 \\

\cline { 4 - 5 } & 700,000 & 22,000 & 140,000 \\

\hline $12 / 31$ & 50,000 & 38,000 \\

\hline

\end{tabular}

Required:

1. Compute the following amounts for 2000 :

seres

a. Direct labor cost.

b. Cost of goods manufactured.

c. Cost of goods sold.

d. Actual manufacturing overhead costs.

2. Prepare a cost of goods manufactured schedule for 2000 .

3. Prepare a cost of goods sold schedule for 2000 .

4. Interpretive Question: Explain how the over- or underapplied manufacturing overhead is usually accounted for.