PA$2-8($Static$)$ Recording Manufacturing Costs, Preparing a Cost of Goods Manufactured Report, and

Calculating Income from Operations $[$LO $2-3,2-4,2-5,2-6]$

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct

labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $$65,000$ and its total

manufacturing overhead cost to be $$91,000.$

Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is

given in second requirement.

Required:

Calculate the predetermined overhead rate.

Fill in the missing values in the T$-$accounts.

Compute over$-$ or underapplied overhead.

Prepare a statement of cost of goods manufactured and sold including the adjustment for over$-$ or underapplied overhead.

Prepare a brief income statement for the company.