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 i Work in process, beginning Work in process, ending $ 15,000 130,000 8,000 70,000 240,000 10,000 $ 473,000 $ 400,000 $ 60,000 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. $ 20,000 $ 30,000 $ 40,000 $ 70,000 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.
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 i Work in process, beginning Work in process, ending $ 15,000 130,000 8,000 70,000 240,000 10,000 $ 473,000 $ 400,000 $ 60,000 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. $ 20,000 $ 30,000 $ 40,000 $ 70,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 i
Work in process, beginning
Work in process, ending
$ 15,000
130,000
8,000
70,000
240,000
10,000
$ 473,000
$ 400,000
$ 60,000
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.
$ 20,000
$ 30,000
$ 40,000
$ 70,000
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.
Transcribed Image Text: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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the amount of underapplied or overapplied overhead cost for the year.
Overapplied
overhead
cost
Required 1 Required 2
Direct materials:
S 8,000
Total raw materials available
Prepare a schedule of cost of goods manufactured for the year.
Answer is not complete.
Raw materials used in production
Chang Company
Schedule of Cost of Goods Manufactured
Direct materials used in production
Cquired 2
Cost of goods manufactured
Total manufacturing costs added to production
Total manufacturing costs to account for
Required 2 >
$
0
0
0
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