Manufacturing overhead costs incurred: Indirect materials.... Indirect labor .. Property taxes, factory . Utilities, factory ... Depreciation, factory Insurance, factory ... $ 15,000 130,000 8,000 70,000 . 240,000 10,000 Total actual manufacturing overhead costs incurred $473,000 Other costs incurred: Purchases of raw materials (both direct and indirect). Direct labor cost ..... $400,000 $60,000 Inventories: Raw materials, beginning.. Raw materials, ending ... Work in process, beginning. Work in process, ending $20,000 $30,000 $40,000 $70,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following cost data relate to the manufacturing activities of Chang Company during the just completed year:

The company uses a predetermined overhead rate of $25 per machine-hour to apply overhead cost to jobs. A total of 19,400 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.

Manufacturing overhead costs incurred:
Indirect materials....
Indirect labor ..
Property taxes, factory .
Utilities, factory ...
Depreciation, factory
Insurance, factory ...
$ 15,000
130,000
8,000
70,000
.
240,000
10,000
Total actual manufacturing overhead costs incurred
$473,000
Other costs incurred:
Purchases of raw materials (both direct and indirect).
Direct labor cost .....
$400,000
$60,000
Inventories:
Raw materials, beginning..
Raw materials, ending ...
Work in process, beginning.
Work in process, ending
$20,000
$30,000
$40,000
$70,000
Transcribed Image Text:Manufacturing overhead costs incurred: Indirect materials.... Indirect labor .. Property taxes, factory . Utilities, factory ... Depreciation, factory Insurance, factory ... $ 15,000 130,000 8,000 70,000 . 240,000 10,000 Total actual manufacturing overhead costs incurred $473,000 Other costs incurred: Purchases of raw materials (both direct and indirect). Direct labor cost ..... $400,000 $60,000 Inventories: Raw materials, beginning.. Raw materials, ending ... Work in process, beginning. Work in process, ending $20,000 $30,000 $40,000 $70,000
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