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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 $58,600 and its total manufacturing overhead cost to be $99,620.

Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement.

Required:

1. ???Calculate the predetermined overhead rate.
2. ???Fill in the missing values in the T-accounts.
3. ???Compute over- or underapplied overhead.
4. ???Prepare a statement of cost of goods manufactured and sold including the adjustment for over- or underapplied overhead.

15. Prepare a brief income statement for the company.

Fill in the missing values in the T-accounts. Raw Materials Inventory Work in Process Inventory Debit Credit Debit Credit Beginning Balance 13,800 79,900 Beginning Balance 28,000 Purchases 94,100 Direct Materials 69,900 Ending Balance 28,000 Direct Labor 41,200 Applied Overhead 70,040 Ending Balance 19,700 Finished Goods Inventory Cost of Goods Sold Debit Credit Debit Credit Beginning Balance 41 600 Unadjusted Cost of Goods Sold Cost of Goods Completed Adjusted Cost of Goods Sold Ending Balance 49,000 Sales Revenue Manufacturing Overhead Debit Credit Debit Credit 312,000 Indirect Materials 10,000 Applied Overhead Indirect Labor 13, 100 Factory Depreciation 12,700 Factory Rent 6,500 Factory Utilities 2,500 Other Factory Costs 9,200 Actual Overhead 54,000 Selling, General, and Administrative Expenses Debit Credit Administrative Salaries 26,800 Office Depreciation 19, 100 Advertising 13,200 Ending Balance 59,100

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