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 $ 15,000 130,000 8,000 70,000 240,000 10,000 $ 473,000 Show Transcribed Text $ 400,000 $ 60,000 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. < Required 1 $ 20,000 $ 30,000 $ 40,000 $ 70,000 Compute the amount of underapplied or overapplied overhead cost for the year. overhead cost Required 2 >

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Kk.102.

Subject : - Accounting 

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
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.
Show Transcribed Text
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.
$ 15,000
130,000
8,000
70,000
240,000
10,000
$ 473,000
G
Required 1
$ 400,000
$ 60,000
$ 20,000
$ 30,000
$ 40,000
$ 70,000
Compute the amount of underapplied or overapplied overhead cost for the year.
overhead cost
Required 2 >
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 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. Show Transcribed Text 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. $ 15,000 130,000 8,000 70,000 240,000 10,000 $ 473,000 G Required 1 $ 400,000 $ 60,000 $ 20,000 $ 30,000 $ 40,000 $ 70,000 Compute the amount of underapplied or overapplied overhead cost for the year. overhead cost Required 2 >
Prepare a schedule of cost of goods manufactured for the year.
Direct materials:
Chang Company
Schedule of Cost of Goods Manufactured
Total raw materials available
Raw materials used in production
Direct materials used in production
Total manufacturing costs added to production
Total manufacturing costs to account for
Cost of goods manufactured
< Required 1
Required 2
Transcribed Image Text:Prepare a schedule of cost of goods manufactured for the year. Direct materials: Chang Company Schedule of Cost of Goods Manufactured Total raw materials available Raw materials used in production Direct materials used in production Total manufacturing costs added to production Total manufacturing costs to account for Cost of goods manufactured < Required 1 Required 2
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