Ivanhoe Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applie

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Ivanhoe Limited is a company that produces machinery to
customer orders, using a normal job-order cost system. It applies
manufacturing overhead to production using a predetermined rate.
This overhead rate is set at the beginning of each fiscal year by
forecasting the year’s overhead and relating it to direct labour
costs. The budget for 2022 was as follows:
As at the end of the year, two jobs were incomplete. These were
1768B, with total direct labour charges of $114,500, and 1819C,
with total direct labour charges of $390,300. Machine hours were
287 hours for 1768B and 647 hours for 1819C. Direct materials
issued for 1768B amounted to $227,000, and for 1819C they amounted
to $420,700.

Total charges to the Manufacturing Overhead Control account for the
year were $900,500, and direct labour charges made to all jobs
amounted to $1,576,200, representing 247,900 direct
labour hours.

There were no beginning inventories. In addition to the ending work
in process just described, the ending finished goods inventory
account showed a balance of $561,960.

Sales for the year amounted to $6,204,300; cost of goods sold
totalled $3,652,740; and sales, general, and administrative
expenses were $1,853,700.

The above amounts for inventories and the cost of goods sold have
not been adjusted for any over-or under-application of
manufacturing overhead to production. It is the company’s practice
to allocate any over-or under-applied overhead to inventories and
the cost of goods sold.
QUESTION:
Prorate the amount calculated in part (a) based on the ending
balances (before prorating) of Work in Process, Finished Goods, and
Cost of Goods Sold. (Round allocation percentage
to 2 decimal places, e.g. 15.25% and final answers to the nearest
whole dollar, e.g. 5,275.)
Allocation
Cost of goods sold
Finished goods inventory
WIP inventory
Total
CALCULATION OF PRORATING?
PRORATING OF UNDERAPPLIED OVERHEAD
A
B
C
D
Amount
Prorate factor calculation
Prorate factor
Prorated amount
Work in process inventory
Finished goods inventory
cost of goods sold
Total