Northley Industries is a manufacturer of sailboats. The following partial information for 2016 is available:

Additional Information
1. Direct manufacturing labour wage rate was $16 per hour.
2. Manufacturing overhead (MOH) is allocated at $25 per direct manufacturing labour-hour (DMLH).
3. During the year, sales revenues were $1,664,000, and marketing and distribution expenses were $199,700.
Required
1. What was the amount of direct materials issued to manufacturing during the year?
2. What was the amount of manufacturing overhead allocated to jobs during the year?
3. What was the cost of jobs completed during the year?
4. What was the balance in work-in-process inventory on December 31, 2016?
5. What was the cost of goods sold before any proration of under allocated or over allocated overhead?
6. What was the under allocated or over allocated manufacturing overhead for the year?
7. Dispose of the under allocated or over allocated manufacturing overhead using:
a. Immediate write-off to Cost of Goods Sold.
b. Proration based on ending balances (before proration) in Work-in-Process, Finished Goods, and Cost of Goods Sold.
8. Using each of the disposition methods in requirement 7, calculate operating income for the year.
9. Which disposition method in requirement 7 do you recommend Northley use? Explain your answer briefly.

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Material Control Work-in-Process Control 1-1-2016 32,000 431,000 403,000 1-1-2016 18,000 Direct Manufacturing Labour 380,000 Finished Goods Control Manufacturing Overhead Allocated 12,250 ,307,250 1-1-2016 1,280,000 Manufacturing Overhead Control Cost of Goods Sold 543,000