exercise 2-13 applying overhead; cost of goods manufactured (LO2, LO6, LO7)

tHE FOLLOWING COST DATA TO THE MANUFACTURING ACTIVITIES OF BLACK COMPANY DURING THE JUST COMPLETED YEAR:

the company uses a predetermined overhead rate to apply overhead cost to jobs. the rate for the year was $5.00 per machine-hour: a total of 10,000.00 machine-hours was recorded for the year. all raw materials ultimately become direct materals-none are classified as indirect materials. 1. compute the amount of unapplied or overapplied overhead cost for the year. 2. prepare a schedule of cost of goods manufactured for the year. manufacturing overhead costs: property taxes factory.........$3000.00 utilities, factory.........$5000.00 indirect labor........$10000.00 depreciation, factory..........$24000.00 insurance, factory..........$6000.0 Total actual manufacturing overhead cost..........$48000.00 other costs incurred: purchases of raw materials.......$32000.00 direct labor cost.........$40000.00 Inventories: Raw materials, beginning.......$8000.00 raw materials, ending.....$7000.00 work in process, beginning...$6000.00 work in process, ending......$7500.00