Southwick Company uses normal costing in its job- costing system. Partially completed T- accounts and additional information for Southwick for 2012 are as follows:

Required
Additional information follows:
a. Direct manufacturing labor wage rate was $ 12 per hour.
b. Manufacturing overhead was allocated at $ 16 per direct manufacturing labor- hour.
c. During the year, sales revenues were $ 1,050,000, and marketing and distribution costs were $ 125,000.
1. What was the amount of direct materials issued to production during 2012?
2. What was the amount of manufacturing overhead allocated to jobs during 2012?
3. What was the total cost of jobs completed during 2012?
4. What was the balance of work- in- process inventory on December 31, 2012?
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 2012?
7. Dispose of the under- or overallocated manufacturing overhead by writing off to Cost of Goods Sold.
8. Calculate Southwick’s operating income for 2012.
9. What alternative method could Southwick have used to dispose of the under- or overallocated manufacturing overhead? Without doing any further calculations, explain how this alternative method would have affected Southwick’s operating income. Which method would you recommend Southwick use? Explain your answerbriefly.

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Direct Materials Control 25,000 240,000 Finished Goods Control 10,000 925,000 Work-in-Process Control 234,000 -2012 44,000 1-1-2012 1-1-2012 880,000 Dir. manuf. abor 348,000 Manufacturing Overhead Control Manufacturing Overhead Allocated Cost of Goods Sold 514,000