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PREPARE :- COST OF GOODS MANUFACTURED AND MENTION WHETHER THE MANUFACTURING COST IS OVERHEAD UNDER OR OVER APPLIED AND HOW MUCH? Brampton Company is a

PREPARE :- COST OF GOODS MANUFACTURED AND MENTION WHETHER THE MANUFACTURING COST IS OVERHEAD UNDER OR OVER APPLIED AND HOW MUCH?

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Brampton Company is a manufacturing firm that uses job-order costing. At the beginning of the year, the company's inventory balances were as follows: Raw materials $52,000, Work in Progress $94,000, Finished goods $266,000 The company applies overhead to jobs using a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated that it would work 62,000 machine hours and incur $496,000 in manufacturing overhead cost. The following transactions were recorded for the year: a.) Raw materials purchased: $822,000. b.) Raw materials requisitioned for use in production: $818,000 ($776,000 direct and $42,000 indirect). c.) The following employee costs were incurred: Direct labor $290,000, Indirect labor $122,000, Administrative Salaries $380,000. d.) Selling costs: $296,000. e.) Factory utility costs: $24,000. f.) Depreciation for the year: $242,000, of which $228,000 is related to factory operations and $14,000 is related to selling and administrative activities. g.) Manufacturing overhead was applied to jobs. The actual level of activity for the year was 58,000 machine hours. h.) Cost of goods manufactured for the year: $1,566,000. i.) Sales for the year: $2,214,000; the costs on the job cost sheets of the goods that were sold: $1,536,000. j.) The balance in the Manufacturing Overhead account was closed out to Cost of Goods Sold. Required: . Prepare a schedule of cost of goods manufactured and mention whether the manufacturing overhead under- or overapplied? If so , by how much

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