The Scott Furniture Company has two departments. Data for 2010 opening balances for inventory include the following:

Direct materials (30 types) ..................................$65,000
Work-in-process (in assembly) .............................50,000
Finished goods .......................................................40,000

Manufacturing overhead budget for 2010:

Budgeted machine-hours were 90,000; budgeted direct labour cost in Assembly was $2,200,000. Manufacturing overhead was applied using budgeted rates on the basis of machine-hours in Machining and on the basis of direct labour cost in Assembly.

Following is a summary of actual events for the year:

The ending work-in-process (all in Assembly) was $60,000.

1. Compute the budgeted overhead rates.

2. Compute the number of machine-hours actually worked.

3. Compute the amount of factory overhead applied in the Assembly Department.

4. Prepare general journal entries for transactions (a)through (f). Work solely with the total amounts, not the details for Machining and Assembly. Explanations are not required. Show data in thousands of dollars. Present T-accounts, including ending inventory balances, for direct materials, work-in-process, and finished goods.

5. Prepare a partial income statement similar to the one illustrated in Exhibit 6-5. Overapplied or underapplied overhead is written off as an adjustment of current cost of goods sold.

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Machining Assembly Indirect labour $250,000 $ 410,000 Supplies 45,000 40,000 Utilities 110,000 75,000 Repairs 140,000 110,000 Supervision 130,000 215,000 Factory rent 95,000 75,000 Depreciation on equipment 105,000 160,000 60,000 Insurance, property taxes, etc. 70,000 $990,000 $1,100,000 Machining Assembly Total a. Direct materials purchased $ 1,900,000 b. Direct materials requisitioned $ 1,100,000 $ 750,000 c. Direct labour costs incurred 1,850,000 900,000 2,800,000 3,700,000 d1. Factory overhead incurred d2. Factory overhead applied e. Cost of goods completed 1,100,000 1,100,000 2,200,000 880,000 ? 1?/td> ?/td> 7,820,000 f1. Sales 1?/td> ?/td> 13,000,000 f2. Cost of goods sold 1?/td> ?/td> 7,800,000