Chapter 4 Problem 1 Please use the following information to answer questions a-e: Gateway had only one job in process during August (Job 2922) and had no finished goods inventory on August 1. Job 2922 was started in July and finished during August. Data pertaining to the job is as follows: Job 2922 Beginning WIP balance on August 1 28,975 Materials ($172,000 was Direct) 190,000 Labor ($207,000 was Direct) 213,000 Additional Overhead Costs 116,000 Units Completed Units In Process at the end of August Units Sold during August *Estimated total manufacturing overhead for August was ($145,950/ The predetermined overhead rate was made on the basis of direct labor hours. The estimated direct labor hours in August were 210 hours. The actual direct labor hours totaled 215 hours 200 125 a) What is Gateway's predetermined overhead rate for August? 145.950 - 195 210 b) What is the amount of manufacturing overhead that would be applied to units of product during the period 695x215=149,425 c) Was overhead underapplied or overapplied for the month of August And by how much? 16.000 149,425 6.000 116,000 140,000 149,425 9,425 d) What was the Adjusted Cost of Goods Sold for August (Note: You may use the direct or indirect method to solve. 9425 28,975 e) What is the total value of Finished Goods Inventory at the end of August