Crunchem Cereal Company incurred the following actual costs during 20x1.

The firm’s predetermined overhead rate is 210 percent of direct-labor cost. The January 1 inventory balances were as follows:

Each of these inventory balances was 10 percent higher at the end of the year.
Required:
1. Prepare a schedule of cost of goods manufactured for 20x1.
2. What was the cost of goods sold for the year?
3. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements.
Show how the solution will change if the following data change: direct material used amounted to $281,000 and raw-material inventory on December 31 was $28,000

Transcribed Image Text:

Direct material used Direct labor $275,000 120,000 Manufacturing overhead. 252,000