Tata Motors produces trucks for commercial use. The company uses a normal job-order costing system to calculate its cost of goods manufactured. On January 01, 2019, there was only one job in process with the following costs:

Direct materials Direct labour Applied overhead Total

Job A-1 $ 5,000 15,000 18,000 $38,000

The following balances were taken from the general ledger of the company as of January 1, 2019:

Direct materials inventory $35,000 Finished goods inventory (for Job D-1) $65,000

During the year 2016, the following events occurred:

Direct materials were purchased on account for $275,000 Two more jobs were started: Job B-1 and Job C-1.

Direct materials and direct labour costs incurred by each job in process during the year 2019 are as follows:

Job A-1 Direct Materials $150,000 Direct Labour $150,000

Job B-1 $30,000 $35,000

Job C-1 $10,000 $15,000

The company incurred the following actual factory overhead during the year:

Factory rent Factory supplies Indirect labour

$120,000 $ 45,500 $ 75,750

Jobs A-1 and B-1 were completed, and Jobs D-1 and A-1 were sold.

a. Calculate the total applied overhead for the year 2019 if the factory overhead costs are applied to each job on the basis of direct labour dollars. [2 Marks]

b. Determine whether overhead is over-applied or under-applied. By how much? [2 Marks]

c. Prepare simple job order cost sheets for jobs A-1, B-1, and C-1. [3 Marks]

d. Prepare a schedule of cost of goods sold, identifying both normal and adjusted cost of goods sold, for year ended December 31