Help Save & Exit Sub Exercise 3-7 Applying Overhead; Cost of Goods Manufactured
ID: 2393087 • Letter: H
Question
Help Save & Exit Sub Exercise 3-7 Applying Overhead; Cost of Goods Manufactured [LO3-3, Lo3-4) The following cost data relate to the manufacturing activities of Chang Company during the just completed year Manufacturing overhead costs incurred: Indirect materials Indirect labor Pro Utilities, factory Depreciation, factory Insurance, factory Total actual manufacturing overhead costs incurred $ 15,300 133,000 8,300 73,000 152,100 10,300 y taxes, factory Other costs incurred: Purchases of raw materials (both direct and indirect) Direct labor cost $403,000 $ 63,000 Inventories: Raw materials, beginning Raw materials, ending Work in process, beginning Work in process, ending $ 20,300 s 30,300 s 40,300 s 70,300 The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 20,000 machine-hours were used during the year. Required 1. Compute the amount of underapplied or overapplied overhead cost for the year. 2. Prepare a schedule of cost of goods manufactured for the year Complete this question by entering your answers in the tabs below. K Prev 2 of 3 Next>Explanation / Answer
1) Compute under or over applied overhead :
Applied overhead = 20000*20 = $400000
Actual overhead = 392000
Over applied overhead = 400000-392000 = $8000
2) Schedule of cost of goods manufactured :
Direct material Beginning raw material 20300 Purchase of raw material 403000 Raw material available for use 423300 Less: ending balance of raw material -30300 Raw material used 393000 Less; Indirect material -15300 Direct material used 377700 Direct labour 63000 Manufacturing overhead applied 400000 Total manufacturing cost 840700 Beginning work in process 40300 Total cost of work in process 881000 Less : Ending work in process -70300 Cost of goods manufactured 810700Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.