MANAGERIAL ACCOUNTING MFG OH OVER/UNDER APPLIED LECT PROB 2

At the end of the current fiscal year Kitco Inc. had the following amounts in its raw material, work in process and finished goods inventories and its cost of goods sold: Raw Material: $ 3,000,000 Work in Process: Raw Material: $ 1,000,000 Direct Labor $ 3,000,000 MFOH $ 4,000,000 Total $ 8,000,000 Finished Goods: Raw Material: $ 500,000 Direct Labor $ 2,500,000 MFOH $ 3,000,000 Total $ 6,000,000 Cost of Goods Sold Raw Material: $ 2,500,000 Direct Labor $ 8,500,000 MFOH $ 14,000,000 Total $ 25,000,000 The Manufacturing Overhead account had a credit balance of $150,000 in it at the end of the fiscal year. Required: Using the above information, use the allocation method to distribute the ending balance in the Manufacturing Overhead account to the appropriate inventory and COGS accounts and determine their ending balance. Use "T" accounts to show your work.