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The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials . .
The following cost data relate to the manufacturing activities of Chang Company during the just | ||||||
completed year: | ||||||
Manufacturing overhead costs incurred: | ||||||
Indirect materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15000 | |||||
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 130000 | |||||
Property taxes, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8000 | |||||
Utilities, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 70000 | |||||
Depreciation, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 240000 | |||||
Insurance, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10000 | |||||
Total actual manufacturing overhead costs incurred . . . . . . . . . | 473000 | |||||
Other costs incurred: | ||||||
Purchases of raw materials (both direct and indirect) . . . . . . . . . . . . . $400,000 | ||||||
Direct labor cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,000 | ||||||
Inventories: | ||||||
Raw materials, beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20000 | |||||
Raw materials, ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 30000 | |||||
Work in process, beginning . . . . . . . . . . . . . . . . . . . . . . . . . | 40000 | |||||
Work in process, ending . . . . . . . . . . . . . . . . . . . . . . . . . . . | 70000 | |||||
Finished Goods, beginning . .. . . . .. .. . . .. . . .. . . .. . . . .. . . | 47000 | |||||
Finished Goods, ending . . . . . . .. . . . .. . . . .. .. . . .. . . . .. . | 64000 | |||||
Other Information: | ||||||
Sales ................................................................................. | 1754600 | |||||
Selling Expense | 157600 | |||||
Administrative Expense ...................................................... | 234000 | |||||
The company uses a predetermined overhead rate to apply overhead cost to jobs. | ||||||
The rate for the year was $25 per machine-hour. A total of 19,400 machine-hours | ||||||
was recorded for 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. |
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