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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.. Property taxes, factory. Utilities, factory... Depreciation, factory. Insurance, factory. Total actual manufacturing overhead costs incurred. Other costs incurred: Purchases of raw materials (both direct and indirect) Direct labor cost... Inventories: Raw materials, beginning... Raw materials, ending.. Work in process, beginning. Work in process, ending.. Finished Goods, beginning. Finished Goods, ending... Other Information: Sales Selling Expense Administrative Expense . 15000 130000 8000 70000 240000 10000 473000 $400,000 $60,000 20000 30000 40000 70000 47000 64000 1754600 157600 234000 The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $25 per machine-hour. A total of 19,400 machine-hours was recorded for 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.

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.. Property taxes, factory. Utilities, factory... Depreciation, factory. Insurance, factory. Total actual manufacturing overhead costs incurred. Other costs incurred: Purchases of raw materials (both direct and indirect) Direct labor cost... Inventories: Raw materials, beginning... Raw materials, ending.. Work in process, beginning. Work in process, ending.. Finished Goods, beginning. Finished Goods, ending... Other Information: Sales Selling Expense Administrative Expense . 15000 130000 8000 70000 240000 10000 473000 $400,000 $60,000 20000 30000 40000 70000 47000 64000 1754600 157600 234000 The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $25 per machine-hour. A total of 19,400 machine-hours was recorded for 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.. Property taxes, factory. Utilities, factory... Depreciation, factory. Insurance, factory. Total actual manufacturing overhead costs incurred. Other costs incurred: Purchases of raw materials (both direct and indirect) Direct labor cost... Inventories: Raw materials, beginning... Raw materials, ending.. Work in process, beginning. Work in process, ending... Finished Goods, beginning. Finished Goods, ending... Other Information: Sales Selling Expense Administrative Expense . 15000 130000 8000 70000 240000 10000 473000 $400,000 $60,000 20000 30000 40000 70000 47000 64000 1754600 157600 234000 The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $25 per machine-hour. A total of 19,400 machine-hours was recorded for 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.
Transcribed Image Text: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.. Property taxes, factory. Utilities, factory... Depreciation, factory. Insurance, factory. Total actual manufacturing overhead costs incurred. Other costs incurred: Purchases of raw materials (both direct and indirect) Direct labor cost... Inventories: Raw materials, beginning... Raw materials, ending.. Work in process, beginning. Work in process, ending... Finished Goods, beginning. Finished Goods, ending... Other Information: Sales Selling Expense Administrative Expense . 15000 130000 8000 70000 240000 10000 473000 $400,000 $60,000 20000 30000 40000 70000 47000 64000 1754600 157600 234000 The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $25 per machine-hour. A total of 19,400 machine-hours was recorded for 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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