Selected T-accounts from the books of Street Manufacturing Company are provided below:
Required:
1) Assuming overhead was allocated on the basis of direct labor cost, compute the predetermined overhead rate.2) Compute the amount by which overhead was over- or underapplied. (Be sure to indicate whether over- or underapplied.)3) Compute the cost of goods sold assuming that the company writes off any over- or underapplied overhead directly against cost of goods sold.4) Compute net income for the period.5) Compute the total amount of inventory that will be reported on the end-of-year balance sheet, including the balances from all of the company's inventory accounts.

Question

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The Answer of Selected T-accounts from the books of Street Manufacturing Company are provided below:
Required:
1) Assuming overhead was allocated on the basis of direct labor cost, compute the predetermined overhead rate.2) Compute the amount by which overhead was over- or underapplied. (Be sure to indicate whether over- or underapplied.)3) Compute the cost of goods sold assuming that the company writes off any over- or underapplied overhead directly against cost of goods sold.4) Compute net income for the period.5) Compute the total amount of inventory that will be reported on the end-of-year balance sheet, including the balances from all of the company's inventory accounts.

Selected T-Accounts from the Books of Street Manufacturing Company Are