a) Jodie remembers clearly that the predetermined overhead rate was based on 60,000 direct-labour hours to be worked for the year and $180,000 in overhead costs. ("Tom mentioned this before he left," Jodie said. "No idea why it is important, but if it can help you, good luck".)
b) The production supervisor's cost sheets showed only one job in process on 30th April. Materials of $2,600 had been added to the job, and 300 direct labour hours had been expended at $6 per hour.
c) The accounts payable are for raw material purchases only, according to Jodie. She clearly remembers that the balance in the account on 1st April was $6,000. Checking with Brendan for his cheque stubs, payments of $40,000 were made to suppliers during April. (All materials used were direct materials.)
d) A charred piece of the payroll ledger shows that 5,200 direct labour hours were recorded for the month. Jodie has confirmed that there were no variations in pay rate (i.e. all employees were paid $6 per hour.)
e) Records in the warehouse indicate that the finished goods inventory totalled $11,000 on 1st April.
f) From another charred piece of paper, you discerned that the cost of goods manufactured for April was $89,000.

Administrative salaries .......................................$2,400
Advertising expense ............................................1,200
Depreciation -- factory building ............................800
Depreciation -- factory equipment ........................1,600
Depreciation -- office equipment ........................180
Direct labour cost ................................................21,900
Raw materials inventory, beginning .....................2,100
Raw materials inventory, ending ........................3,200
Finished goods inventory, beginning ...................46,980
Finished goods inventory, ending ......................44,410
General liability insurance expense .....................240
Indirect labour cost ..............................................11,800
Insurance on factory ...........................................1,400
Purchases of raw materials ................................14,600
Repairs and maintenance of factory ....................900
Sales salaries ......................................................2,000
Taxes on factory .................................................450
Travel and entertainment expense ....................1,410
Work in process inventory, beginning .................1,670
Work in process inventory, ending ....................1,110


b) Preparation of a Schedule of Cost of Goods Manufactured and Cost of Goods Sold. (The schedules may be in the appendix). Explain why some items have been excluded from the schedules.