The transactions that occurred during most recent accounting

Question

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $50,100 and its total manufacturing overhead cost to be $85,170.

Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow:

Required:
1.	Calculate the predetermined overhead rate.

	Predetermined Overhead Rate % of Direct Labor Cost

2.	Fill in the missing values in the T-accounts.

Raw Materials Inventory

Beginning Balance	14300
Purchases	93400
Ending Balance	29900

Work in Process Inventory

Beginning Balance	28500
Direct Materials	68900
Direct labor	40100
Applied Overhead
Ending Balance	18600

Finished Goods Inventory

Beginning Balance	41600
Cost of Goods Completed
Ending Balance	49500

Cost of Goods Sold

Unadjusted Cost of Goods Sold
Adjusted Cost of Goods Sold

Sales Revenue

318,000

Manufacturing Overhead

Indirect Materials	8900		Applied Overhead
Indirect Labor	13600
Factory Depreciation	11700
Factory Rent	5300
Factory Utilities	1800
Other Factory costs	9000
Actual Overhead	50300

Selling, General, Administrative Expenses

Adm. Salaries	26400
Office Deprecation	18100
Advertising	14800
Ending Balance	59300

3.	Compute over- or underapplied overhead.

Manufacturing Overhead

4.	Prepare a statement of cost of goods manufactured and sold including the adjustment for over- or underapplied overhead.

Dodson Manufacturing Company

Cost of Goods Manufactured Report and sold

Direct Materials Used in Production
Total Current Manufacturing Costs
Total Work in Process
Cost of Goods Manufactured
Cost of Goods Available for Sale
Unadjusted Cost of Goods Sold
Adjusted Cost of Goods Sold

5.	Prepare a brief income statement for the company.

Dodson Manufacturing Company

Income Statement

Net Income from Operations