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Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis [LO3-3, LO3-4] Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $115,700 of manufacturing overhead for an estimated allocation base of $89,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: Purchase of raw materials $ 139,000 Direct labor cost $ 85,000 Manufacturing overhead costs: Indirect labor $ 111,300 Property taxes $ 8,100 Depreciation of equipment $ 16,000 Maintenance $ 13,000 Insurance $ 11,000 Rent, building $ 36,000 Beginning Ending Raw Materials $ 23,000 $ 15,000 Work in Process $ 45,000 $ 39,000 Finished Goods $ 72,000 $ 56,000 Required: 1. Compute the predetermined overhead rate for the year. 2. Compute the amount of underapplied or overapplied overhead for the year. 3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials. 4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer. 5. Assume that the $39,000 ending balance in Work in Process includes $8,600 of direct materials. Given this assumption, supply the information missing below:

Assignment 2-3 Week 2 Problems Saved Help Save & Exit Sbmit Check my work 3 Problem 3-14 Schedule of Cost of Goods Manufactured; Overhead Analysis LO3-3, L03-4] Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $115,700 of manufacturing overhead for an estimated allocation base of $89,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: 10 points eBook Purchase of raw materials Direct labor cost Manufacturing overhead costs: $139,000 85,000 Print Indirect labor Property taxes Depreciation of equipment Maintenance Insurance Rent, building 111,300 $8,100 16,000 $13,000 $11,000 $ 36,000 References Raw Materials Work in Process Finished Goods Beginning Ending $ 23, 000 15,000 $ 45, 000 39,000 $ 72,000 56,000 Required: 1. Compute the predetermined overhead rate for the year. 2. Compute the amount of underapplied or overapplied overhead for the year. 3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials 4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer. 5. Assume that the $39,000 ending balance in Work in Process includes $8,600 of direct materials. Given this assumption cunnw the informatinn miceinn helou

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