Check my workCheck My Work button is now enabled The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials $ 16,300 Indirect labor 143,000 Property taxes, factory 9,300 Utilities, factory 83,000 Depreciation, factory 149,100 Insurance, factory 11,300 Total actual manufacturing overhead costs incurred $ 412,000 Other costs incurred: Purchases of raw materials (both direct and indirect) $ 413,000 Direct labor cost $ 73,000 Inventories: Raw materials, beginning $ 21,300 Raw materials, ending $ 31,300 Work in process, beginning $ 41,300 Work in process, ending $ 71,300 The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 21,000 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.
Check my workCheck My Work button is now enabled The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials $ 16,300 Indirect labor 143,000 Property taxes, factory 9,300 Utilities, factory 83,000 Depreciation, factory 149,100 Insurance, factory 11,300 Total actual manufacturing overhead costs incurred $ 412,000 Other costs incurred: Purchases of raw materials (both direct and indirect) $ 413,000 Direct labor cost $ 73,000 Inventories: Raw materials, beginning $ 21,300 Raw materials, ending $ 31,300 Work in process, beginning $ 41,300 Work in process, ending $ 71,300 The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 21,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
| Indirect materials | $ | 16,300 |
| Indirect labor | 143,000 | |
| Property taxes, factory | 9,300 | |
| Utilities, factory | 83,000 | |
| 149,100 | ||
| Insurance, factory | 11,300 | |
| Total actual manufacturing overhead costs incurred | $ | 412,000 |
| Other costs incurred: | ||
| Purchases of raw materials (both direct and indirect) | $ | 413,000 |
| Direct labor cost | $ | 73,000 |
| Inventories: | ||
| Raw materials, beginning | $ | 21,300 |
| Raw materials, ending | $ | 31,300 |
| Work in process, beginning | $ | 41,300 |
| Work in process, ending | $ | 71,300 |
The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 21,000 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.
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