126% + Zoom Add Page T Text View Insert Table Chart Shape Media Comment Collaborate Format Document 1. (1 point) Compute the predetermined overhead rate Morrison will use to apply MOH to work in process. 2. (1 point) year. Compute the amount of overhead applied to Work-in-Process during the 3. (3 points) Compute the ending balances in Raw Materials, Work-in-process, and Finished Goods accounts (hint: don't forget to include beginning balances). 4. (2 points) Compute the amount of over- or under-applied overhead for the year ibe sure to label it as over or under applied). 5. (2 points) Assuming Morrison closes under or over-applied overhead to Cost of Goods Sold, compute adjusted COGS for the period. 6. (2 points) Prepare a traditional format income statement for the year. (ignore income taxes). Tv 126% + Zoom Add Page T Text View Insert Table Chart Shape Media Comment Collaborate Format Document ACCTG 231 - SPRING 2020 COMPREHENSIVE PROBLEM 1 The purpose of the comprehensive problems is to have students solve problems generally more detailed than the Connect homework and without a step-by-step template in which to Input data. Thus, a clear and logical presentation of your solutions is part of the assignment NO credit will be given for answers without supporting computations. Additionally, while you are welcome to discuss strategies, ideas, etc. with others, each student is required to complete their own assignment. To facilitate this, everyone will use the LAST 5 digits of their student ID as the amount of Raw Materials used in production (see highlight below). NO credit will be given for a solution that does not correspond to your ID. Submit your answer through Blackboard. Problem Information: Morrison Company began the year with the following balances in its inventory accounts: Raw Materials $ 125,000 Work-in-Process $ 320,000 Finished Goods $ 400,000 Morrison applies overhead to production using direct labor cost. As of the beginning of the year, Morrison estimated total manufacturing overhead for the year to be $300,000 and total direct labor cost to be $600,000. The following transactions occurred during the year: 1. Purchased $100,000 of raw materials on account. 2. Used $79276 raw materials in production of the materials used, 80% were classified as direct and 20% as indirect. 3. Incurred and paid wages and salaries of $600,000. The wages were classified as: $525,000 Indirect labor $ 75,000 Selling and administration $ 230,000 Incurred the following additional costs: Miscellaneous manufacturing overhead costs (this amount does not include costs of indirect materials, indirect labor and depreciation) $ 85,000 Selling and Administrative costs $230,000 Recorded total depreciation of $120,000, related to: Factory manufacturing equipment $75,000 Equipment used for selling and administrative purposes $45,000 Work in process totaling $800,000 was transferred to Finished Goods during the year. 7. During the year, finished goods costing $1,000,000 were sold for $1,500,000. REQUIRED (to receive credit, answer must be supported by clearly presented, easy to understand, computations and must use the last 5 digits of your student ID as the amount of materials used in production). Round all answers to the nearest dollar. Direct labor 4. 5