JOB ORDER COSTING

The following cost data relate to the manufacture activities of the Aquarius Company during 2018:

Manufacturing overhead costs incurred during the year:

Property taxes $1,500

Utilities, factory 2,500

Indirect labor 5,000

Depreciation, factory 12,000

Insurance, factory 3,000

Total actual costs $24,000

Other costs incurred during the year:

Purchases of raw materials $16,000

Direct labor cost 20,000

Inventories:

Raw materials, January 1, 2018 $ 4,000

Raw materials, December 31, 2018 $ 3,500

Work in Process, January 1, 2018 $ 3,000

Work in process, December 31, 2018 $ 3,750

The company uses a predetermined overhead rate to charge overhead cost to production. The rate for 2018 was $ 5.00 per machine hour, a total of 5,000 machine hours were used for the year.

REQUIRED:

1. Compute the amount of under or over applied overhead cost for the year 2018.

2. Prepare a schedule of cost of goods manufactured for 2018.