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Southwick Company uses normal costing in its job-costing system. Partially completed T-accounts and additional information for Southwick for 2017 are as follows:

a. Direct manufacturing labour wage rate was $12 per hour.

b. Manufacturing overhead was allocated at $16 per direct manufacturing labour-hour.

c. During the year, sales revenues were $1,040,000 and marketing and distribution costs were $124,000

T- accounts

Direct Materials Control

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1-1-2017 38,000 l 233.000

134,000 l

Work-in-process Control

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1-1-2017 43.000 l

Dir. Manuf l

labour 354,000 l

Finished Goods Control

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1-1-2017 11,000 l 667,800

923,920l

Manufacturing Overhead Control

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509,000

Manufacturing Overhead Allocated

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Cost of Goods Sold

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Required

1. What was the amount of direct materials issued to production during 2017?
2. What was the amount of manufacturing overhead allocated to jobs during 2017?
3. What was the total cost of jobs completed during 2017?
4. What was the balance of work-in-process inventory on December 31, 2017?
5. What was the cost of goods sold before proration of under-or overallocated overhead?
6. What was the under-or overallocated manufacturing overhead in 2017?
7. Dispose of the under-or overallocated manufacturing overhead using the following:

a. write-off to Cost of Goods Sold

b. Proration based on ending balances(before proration) in Work-in-Process Control, Finished Goods Control. and Cost of Goods Sold

1. Using each of the approaches in requirement 7, calculate Southwick's operating income for 2017.
2. Which approach in requirement 7 do you recommend Southwick use? Explain your answer briefly.

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