IE Exercise $2-11($Static$)$: Computing inventory balances and over$-$ or underapplied overhead LO P$1,$ P$2,$ P$3,$ P$4$

The following information is available for a custom manufacturer.

Inventories Costs incurred for the period

Raw materials, beginning $ $38,000$ Raw materials purchases $ $18,460$

Work in process, beginning $12,400$ Direct materials used $43,250$

Finished goods, beginning $8,750$ Direct labor used $22,800$

Cost of goods manufactured $95,290$ Factory overhead $($actual$)$

Cost of goods sold $($not considering over$-$ or underapplied overhead$)83,200$ Indirect materials used $9,300$

Sales $100,000$ Indirect labor used $16,400$

Predetermined overhead rate based on direct materials used $80\%$ Other overhead costs $4,300$

Complete the T$-$accounts for each of the three inventory accounts using the data provided in the above table.

Compute overapplied or underapplied overhead.

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