Soldatna Corporation’s controller frequently prepared T-accounts to analyze inventory. However, his penmanship was poor and he is no longer employed by the company. The following was reconstructed from a scratch pad left on his desk. The missing values (?) were illegible. Analyze the information and answer the requirements that follow.

Raw Materials Cost of Goods Sold

beg. bal. ? ? 491,000 ?

175,000 491,000 ?

175,000 ?

481,000

102,000

Work in Process Factory Overhead

beg. bal. 44,000 460,000 35,000 ?

113,000 40,000

? 75,000

? ?

477,000 ? ? ?

? ?

Finished Goods

beg. bal. 131,000 ?

?

? ?

100,000

(a) Overhead is applied at 100% of direct labor cost. How much was direct labor?

(b) Was overhead over- or underapplied, and by how much?

(c) Which inventory category increased?

(d) Other factory overhead, besides indirect material and indirect labor, was $75,000. Indirect labor was 25% of the direct labor. How much was indirect material?

(e) How much was cost of goods manufactured?