The Alpha Company makes specialty computers. To do so, it has the following information: RAW MATERIALS INVENTORY Beginning balance 10,000 USED 245,000 WORK IN PROCESS 35,000 TRANSFERRED FINISHED GOODS INVENTORY Beginning balance 30,000 COSTS OF GOODS MANUFACTURED COST OF GOODS SOLD COST OF GOODS SOLD Beginning balance PURCHASES 250,000 227,000 180,000 DIRECT MATERIALS DIRECT LABOR MOH APPLIED Ending balance Ending balance 15,000 37,000 Ending balance 23,000 Indirect materials Indirect labor Utilities Depreciation Taxes Other TOTAL MANUFACTURING OVERHEAD 8.000 MOH APPLIED 100,000 12,000 25,000 1,500 35,000 181,500 Salaries & Wages Payable 335,000 Beginning balance DIRECTLABOR INDIRECT LABOR OTHER Ending balance 5,000 180.000 100,000 50,000 Alpha pays its plant workers on average $20 an hours. The predetermined overhead rate to apply MOH is $22.50 per direct labor hours. 10 Z each REQUIRED: 1. COMPLETE THE MISSING AMOUNTIN: RAW MATERIALS FOR PURCHASES MOH FOR AMOUNT APPLIED WORK IN PROCESS KOH MOH APPLIED AND AMOUNT TRANSFERRED FINISHED GOODS COST OF GOODS SOLD 2. ADJUST THE MOH/CGS TO ACCOUNT FOR THE OVER- OR UNDERAPPLIED BALANCE and SHOW THE JOURNAL ENTRY BELOW: 3. ASSUME THAT THE SALES PRICE FOR THESE GOODS IS SUCH THAT ADJUSTED COST OF GOODS SOLD IS 80% OF THE SALES PRICE. WHAT WOULD BE: (1) GROSS PROFIT AND (2) SALES REVENUE? USE THE ADJUSTED CGS FOR THE CALCULATIONS HERE. 4. COMPLETE A COST OF GOODS MANUFACTURING AND AN ADJUSTED COST OF GOODS SOLD SCHEDULE (BELOW) 10 5. COMPLETE AN INCOME STATEMENT - ASSUME THAT THE SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ARE $125,000 AND THERE ARE NO INCOME TAXES. USE THE ADJUSTED CGS FOR THIS STATEMENT. COST OF GOODS MANUFACTURED SCHEDULED ADJUSTED COST OF GOODS SOLD INCOME STATEMENT