Tuesday, 12 November 2019

The following cost data relate to the manufacturing activities of Chang Company during the just completed year:

The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
   

Manufacturing overhead costs incurred:

Indirect materials $ 16,700
Indirect labor
147,000
Property taxes, factory
9,700
Utilities, factory
87,000
Depreciation, factory
273,900
Insurance, factory
11,700
Total actual manufacturing overhead costs incurred $ 546,000
Other costs incurred:

Purchases of raw materials (both direct and indirect) $ 417,000
Direct labor cost $ 77,000
Inventories:

Raw materials, beginning $ 21,700
Raw materials, ending $ 31,700
Work in process, beginning $ 41,700
Work in process, ending $ 71,700

The company uses a predetermined overhead rate of $26 per machine-hour to apply overhead cost to jobs. A total of 21,400 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.

Contact Us For Tutoring:

Name

Email *

Message *