Telstar uses job order costing. The T-accounts below summarize its production activity for the year. Factory Overhead Finished Goods Inventory Raw Materials Inventory 45,000 24,250 Factory Wages Payable 126,000 85,750 Work in Process Inventory 8,000 102,684 8,000 40,250 40,250 61,370 24,250 170,320 85,750 102,684 170,320 153,290 Exercise 19-16 Manufacturing cost flows P1 P2 P3 1. Compute the amount for each of the following. a. Direct materials used b. Indirect materials used c. Direct labor used d. Indirect labor used e. Cost of goods manufactured f. Cost of goods sold (before closing 2. Compute the amount that overhead is overapplied or underapplied. over- or underapplied overhead) Exercise 19-16 (20 minutes) 1. a. $24,250 = Direct materials used (see credit to Raw Materials Inventory and debit to Work in Process Inventory). b. $8,000 = Indirect materials used (see credit to Raw Materials Inventory and debit to Factory Overhead). c. $85,750 = Direct labor used (see credit to Factory Wages Payable and debit to Work in Process Inventory). d. $40,250 = Indirect labor used (see credit to Factory Wages Payable and debit to Factory Overhead). e. $170,320 = Cost of goods manufactured (see debit to Finished Goods Inventory). f. $153,290 = Cost of goods sold, before closing under- or overapplied overhead (see credit to Finished Goods Inventory). 2. $6,936 underapplied overhead; from $109,620 actual - $102,684 applied.