Manufacturing overhead costs incurred: Property taxes, factory $3,000 Utilities, factory 5,000 Indirect labor 10,000 Depreciation, factory 24,000 Insurance, factory 6,000 Total actual manufacturing overhead costs $ 48,000 Other costs incurred: Purchases of raw materials $ 32,000 Direct labor cost $ 40,000 Inventories: Raw materials, beginning $ 8,000 Raw materials, ending $7,000 Work in process, beginning $ 6,000 Work in process, ending $ 7,500 The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 10,000 machine-hours was recorded for the year. All raw materials ultimately become direct materials-none are classified as indirect materials. 2. Prepare a schedule of cost of goods manufactured for the year using the indirect method.
Manufacturing overhead costs incurred: Property taxes, factory $3,000 Utilities, factory 5,000 Indirect labor 10,000 Depreciation, factory 24,000 Insurance, factory 6,000 Total actual manufacturing overhead costs $ 48,000 Other costs incurred: Purchases of raw materials $ 32,000 Direct labor cost $ 40,000 Inventories: Raw materials, beginning $ 8,000 Raw materials, ending $7,000 Work in process, beginning $ 6,000 Work in process, ending $ 7,500 The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 10,000 machine-hours was recorded for the year. All raw materials ultimately become direct materials-none are classified as indirect materials. 2. Prepare a schedule of cost of goods manufactured for the year using the indirect method.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Manufacturing overhead costs incurred:
Property taxes, factory $3,000 Utilities, factory
5,000 Indirect labor 10,000 Depreciation,
factory 24,000 Insurance, factory 6,000 Total
actual manufacturing overhead costs $ 48,000
Other costs incurred: Purchases of raw materials
$ 32,000 Direct labor cost $ 40,000 Inventories:
Raw materials, beginning $ 8,000 Raw
materials, ending $7,000 Work in process,
beginning $ 6,000 Work in process, ending $
7,500 The company uses a predetermined
overhead rate to apply overhead cost to jobs.
The rate for the year was $5 per machine-hour;
a total of 10,000 machine-hours was recorded
for the year. All raw materials ultimately become
direct materials-none are classified as indirect
materials. 2. Prepare a schedule of cost of goods
manufactured for the year using the indirect
method.
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