Telstar uses job order costing. The T-accounts below summarize its production activity for the year.

1. Compute the amount for each of the following.

a. Direct materials used

b. Indirect materials used

c. Direct labor used

d. Indirect labor used

e. Cost of goods manufactured

f. Cost of goods sold (before closing over- or underapplied overhead)

2. Compute the amount that overhead is overapplied or underapplied.

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Factory Wages Payable Raw Materials Factory Work in Process Finished Goods Inventory Overhead Inventory Inventory 45,000 24,250 126,000 85,750 8,000 102,684 24,250 170,320 170,320 153,290 8,000 40,250 40,250 85,750 61,370 102,684