Carlton 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 $42,000 and its total manufacturing over-head cost to be $75,600.

Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow:

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
5. Prepare a brief income statement for thecompany.

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Raw Materials Inventory Work in Process Inventory Beginning Bae Direct. Materials Direct Labor Applied Overhead Beginning Balance10 Purchas 0,000 85,000 30 Ending Balance $18,500 35,000 Ending Balance 20,000 Finished Goods Inventory Cost of Goods Sold Beginning Balance60,000 Cot of Goods Unadjusted Cost of Goods Sold Completed Ending Balance Adjusted Cost of Goods Sold 40,000 Manufacturing Overhead Sales Revenue Indirect. Materials Indirect. Lahor Factory Depreciation Factory Rent Factory Utilities Other Factory Costs Actual Overhead 10,000 Applied Overhead 20,000 13,000 12,000 5,000 14,000 74,000 280,000 Adm. Salaries Office Depreciation20,000 Advertising Ending Balance Selling, General, and Administrative Expenses 30.000 19,000 69,000