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Before the under-or overapplied overhead can be computed, we must determine the amount of direct materials used in production for the year. Raw materials inventory, beginning Add, Purchases of raw materials Raw materials available Deduct: Raw materials inventory, ending Raw materials used in production Since no indirect materials are identified in the problem, these would all be direct materials. With this figure, we can proceed as follows: GITANO PRODUCTS Schedule of Cost of Goods Manufactured D. L. Sametan Camany is a manufacturing firm that uses job-order costing. The company's inventory ssor J.P. Vida, CPA.CMA 3AY/Problem Solving. in manufacturing overhead cost. The following transactions were recorded for the year: beginning of the year, the company estimated that it would wort - Raw materials were requisitioned for use in production, $307,000($281,000 direct and $26,000 indirect). - Raw materials were purchased, $315,000. - The following employee costs were incurred: direct labour, $377,000; indirect labour, $96,000; and administrative salaries, $172,000. - Selling costs, $147,000. - Factory utility costs, $10,000. Felated to factory operations and $7.000 is related to selling and indministrative activities: - Sales for the year totalled \$1.253,000. a. Prepare a schedule of cost of goods manufactured in good form. b. Was the overhead underapplied or overapplied and by how much? Required: The company closes any underapplied or overapplied overhead to Cost of Goods Sold. c. Prepare an income statement for the year in good form

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