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.

2.

Fill in the missing values in the T-accounts.

Beginning Balance

14300

Purchases

93400

Ending Balance

29900

Beginning Balance

28500

Direct Materials

68900

Direct labor

40100

Applied Overhead

Ending Balance

18600

Beginning Balance

41600

Cost of Goods Completed

Ending Balance

49500

Unadjusted Cost of Goods Sold

Adjusted Cost of Goods Sold

318,000

Indirect Materials

8900

Applied Overhead

Indirect Labor

13600

Factory Depreciation

11700

Factory Rent

5300

Factory Utilities

1800

Other Factory costs

9000

Actual Overhead

50300

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.

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.

Net Income from Operations