Exercise 3-7 (Algo) Applying Overhead; Cost of Goods Manufactured [LO3-3, LO3-4] 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 Work in process, beginning Work in process, ending $ 17,000 150,000 10,000 90,000 147,000 12,000 $ 426,000 $ 420,000 $ 80,000 $ 22,000 $ 32,000 $ 42,000 $ 72,000 The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 21,700 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of cost of goods manufactured for the year. Chang Company Schedule of Cost of Goods Manufactured Direct materials: Beginning raw materials inventory $ 22,000 Add: Purchases of raw materials 420,000 Total raw materials available 442,000 Less: Ending raw materials inventory 32,000 Raw materials used in production 410,000 Less: Indirect materials used in production 17,000 Direct materials used in production $393,000 Manufacturing overhead applied to work in process Direct labor 434,000 + 80,000 Total manufacturing costs added to production 907,000 Total manufacturing costs to account for 907,000 Less: Ending work in process inventory Cost of goods manufactured 72,000. $ 877,000 17 Next