Truly a terrible game, even for its time, in that it was actually impossible to complete due to a bug in the programming (at least in the IBM-PC version I had). Hard to imagine how this got shipped when a playtester with a walkthrough could otherwise have completed the entire game in 30 minutes or so. Perhaps someone just sent the wrong floppy disk to the publisher. I don't know if a fixed version was ever released.
Also annoyingly your companions Thorin and Gandalf operated with their own rather random pseudo-AI, wandering in and out of rooms and often getting themselves killed out of view.
It did loosely follow the plot of the book.
On the plus side, it came with an actual physical paperback copy of 'The Hobbit' in the box, which was my introduction to the works of Tolkien when I was still quite young, and which still sits on my shelf 40 years later, though the game it came with is long gone. Imagine a game manual/hint guide that is 287 pages long! It would be interesting if GOG could replicate that via digital assets, if nothing else.