1) The following cost data relate to the manufacturing activities of the Kamas Company during the most recent year: Manufacturing overhead costs incurred during the year: $1,600 2,600 5,100 Property taxes Utilities, factory Indirect labour Depreciation, factory Insurance, factory Total actual costs Other costs incurred during the year: Purchases of raw materials Direct labour cost Inventories: 13,000 2,500 $24,800 Raw materials, beginning Raw materials, ending Work in process, beginning Work in process, ending $15,000 22,000 $5,000 4,400 3,500 4,500 The company uses a predetermined overhead rate to charge overhead cost to production. The rate for the year just completed was $4.00 per machine hour; a total of 6,000 machine hours were recorded for the year. Required: a. Compute the amount of under- or overapplied overhead cost for the year just ended. b. Prepare a schedule of cost of goods manufactured for the year. (Disclose ALL supporting calculation steps)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1) The following cost data relate to the manufacturing activities of the Kamas Company during the most recent year:
Manufacturing overhead costs incurred during the year:
$1,600
2,600
5,100
Property taxes
Utilities, factory
Indirect labour
Depreciation, factory
Insurance, factory
Total actual costs
Other costs incurred during the year:
Purchases of raw materials
Direct labour cost
Inventories:
13,000
2,500
$24,800
Raw materials, beginning
Raw materials, ending
Work in process, beginning
Work in process, ending
$15,000
22,000
$5,000
4,400
3,500
4,500
The company uses a predetermined overhead rate to charge overhead cost to production. The rate for the year just completed was $4.00 per
machine hour; a total of 6,000 machine hours were recorded for the year.
Required:
a. Compute the amount of under- or overapplied overhead cost for the year just ended.
b. Prepare a schedule of cost of goods manufactured for the year.
(Disclose ALL supporting calculation steps)
Transcribed Image Text:1) The following cost data relate to the manufacturing activities of the Kamas Company during the most recent year: Manufacturing overhead costs incurred during the year: $1,600 2,600 5,100 Property taxes Utilities, factory Indirect labour Depreciation, factory Insurance, factory Total actual costs Other costs incurred during the year: Purchases of raw materials Direct labour cost Inventories: 13,000 2,500 $24,800 Raw materials, beginning Raw materials, ending Work in process, beginning Work in process, ending $15,000 22,000 $5,000 4,400 3,500 4,500 The company uses a predetermined overhead rate to charge overhead cost to production. The rate for the year just completed was $4.00 per machine hour; a total of 6,000 machine hours were recorded for the year. Required: a. Compute the amount of under- or overapplied overhead cost for the year just ended. b. Prepare a schedule of cost of goods manufactured for the year. (Disclose ALL supporting calculation steps)
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