the following cost data relate to the manufacturing activities of Chang company

Chapter 3 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in produc- tion were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overap- plied overhead is closed to Cost of Goods Sold. 3. Prepare an income statement EXERCISE 3-7 Applying Overhead, Cost of Goods Manufactured L03-3, L03-4 The following cost data relate to the manufacturing activities of Chung Company during the just completed year $ 15,000 130,000 8,000 70,000 240,000 10.000 $473.000 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 $400,000 $60,000 $20,016 $30.000 $40,000 $70.000 The company uses a predetermined overhead rate of $25 per machine-hour to apply overhead cost to jobs. A total of 19.400 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. EXERCISE 3-8 Applying Overhead, Journal Entries Disposing of Underapplied or Overapplied Overhead LB-L3-2. LOW-4 The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year Manufacturing Overhead Work in Process 390.000 Bal 710,000 460.000 70,000 15.000 260,000 85.000 390,000 40.000 Finished Goods Cost of Goods Solid 50.000 710.000 640.000 640,000 cBook Air