Factory Overhead Analysis of Adelaide Manufacturing Company

Income Statement; Cost of Goods Sold Statement; Factory Overhead Analysis On October 1, 19—, the accountant of the Adelaide Manufacturing Company, Inc. had prepared a trial balance from which these accounts were extracted:
                                                               Debits               Credits
Materials and Supplies Inventory           $40,700
Work in Process Inventory (1,200 units)   4,070
Finished Goods Inventory (2,800 units)     9,800
Buildings                                                 48,000
Accumulated Depreciation — Buildings                           $ 6,000
Machinery and Equipment                      96,000
Accumulated Depreciation — Machinery and Equipment . 37,500
Office Equipment                                    3,200
Accumulated Depreciation—Office Equipment                  1,000
Accrued Payroll                                                                   650
For the month of October, the following transactions and other data have been made available:
Purchased materials and supplies             $ 24,800
Paid factory overhead                              20, 1 00
Paid marketing expenses                            25,050
Paid administrative expenses                      19,700
Requisitions for:
Direct materials                                          29,800
Indirect materials                                          3,950
Depreciation:
 

Allocation: 

Building, 5% (75% to manufacturing, 15% to marketing, and 10% to administrative expenses)
Machinery and equipment, 10%
Office equipment, 15% (40% to marketing and 60% to administrative expenses)

Sales on account (20,700 units)                       144,900
Sales returns and allowances                              1 ,300
Cash payments for:
Accounts payable                                            75,000
Payroll                                                            21,800
Distribution of payroll earned:
Direct labor                                                      18,600
Indirect labor                                                    4,400
Cash collected from customers                     1 16,900
Factory overhead applied                                27,450
20,400 units are transferred to finished goods.
Cost of goods sold figure is calculated on the FIFO basis.

1,200 units are in work in process inventory on October 31, 19—
.
Required: (1) The cost of goods sold section of the income statement in detail. Any over- or underabsorbed factory overhead is deferred until the end of the fiscal period.

(2) The income statement for the month of October.
(3) The amount of over- or underapplied factory overhead.