A B C E F G H 1 Stanford Enterprises uses job-order costing. 2 The allocation base for overhead is direct labor hours. 3 4 Data for the year just ended: 5 Estimated total manufacturing overhead cost 6 Estimated total direct labor hours 7 Actual total direct labor hours 8 9 Actual costs for the year: Purchase of raw materials (all direct) $ 275,000 25,000 27,760 10 $375,000 11 Direct labor cost $536,300 12 Manufacturing overhead costs $302,750 13 14 Inventories: Beginning Ending 15 Raw materials (all direct) $ 15,000 $ 11,375 16 Work in process $ 27,875 $ 22,350 17 Finished goods $ 34,600 $ 26,450 18 19 Use the data to answer the following. 22 23 24 21 1. Compute applied overhead and determine the amount of underapplied or overapplied overhead: Actual manufacturing overhead cost Predetermined overhead rate Actual direct labor hours 25 Manufacturing overhead applied 26 27 Underapplied (overapplied) manufacturing overhead 28 29 2. Prepare a schedule of cost of goods manufactured: 30 31 32 33 Direct materials: Stanford Enterprises Schedule of Cost of Goods Manufactured 34 Raw materials inventory, beginning Add: Purchases of raw materials 35 36 Total raw materials available 37 Deduct: Raw materials inventory, ending 38 Raw materials used in production Direct labor Manufacturing overhead applied to work in process Total manufacturing costs Add: Beginning work in process inventory Total cost of work in process Deduct: Ending work in process inventory Cost of goods manufactured 7 3. Prepare a schedule of cost of goods sold. 3. 9. 1 Stanford Enterprises Schedule of Cost of Goods Sold 2 Finished goods inventory, beginning 3 Add: Cost of goods manufactured 4 Cost of goods available for sale 5 Deduct: Finished goods inventory, ending 5 Unadjusted cost of goods sold 7 Underapplied (overapplied) overhead 3 Adjusted cost of goods sold 9