Crunchem Cereal Company incurred the following actual costs during 20x4.

Direct material used..................................................................$412,500

Direct labor............................................................................... 180,000

Manufacturing overhead.......................................................... 378,000

The firm’s predetermined overhead rate is 210 percent of direct-labor cost. The January 1 inventory balances were as follows:

Raw material........................................................................... $45,000

Work in process........................................................................ 58,500

Finished goods......................................................................... 63,000

Each of these inventory balances was 10 percent higher at the end of the year.

Required:

1. Prepare a schedule of cost of goods manufactured for 20x4.

2. What was the cost of goods sold for the year?

3. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change: direct material used amounted to $409,000 and raw-material inventory on January 1 was $43,000.