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7. [Answer & Solving Process Innovative Metal Products Company manufactures pipes and applies manufacturing costs to production at a budgeted overhead allocation rate of $18 per direct labor- hour. The following data are obtained from the accounting records for June 2018: Direct materials cost Direct labor cost (18,000 hours @ $20/hour) Indirect labor cost Plant facility rent Depreciation on plant machinery and equipment Sales commissions Administrative expenses $600,000 360,000 40,000 250,000 134,000 45,000 60,000 Ending balances in the following accounts are: Work-in-Process Finished Goods Cost of Goods Sold $500,000 1,250,000 3,250,000 If the company adjusts the under- or over-allocated overhead costs by prorating them based on ending balances of inventories before proration, what would be the amount of cost of goods sold after adjustment? (Do not round any intermediary calculations and round final answers to the nearest integer.) 1 $3,383,250 2 $3,315,000 3 $3,289,000 4 $3,350,000 5 $3,185,000 8. [Answer Only) A manufacturing plant produces two product lines: golf equipment and soccer equipment. An example of indirect manufacturing cost is the depreciation on the building (plant) used to manufacture golf and soccer equipmen 2 labor to design the soccer ball 3 monthly lease payments for a specialized piece of equipment needed to manufacture the golf driver material used to make the soccer balls 6 labor to shape the leather used to make the soccer ball 4 / 8

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