Question
The following cost data relate to the manufacturing activities of the Kookabuka Company during the most recent year: manufacturing overhead costs incurred during the year:
The following cost data relate to the manufacturing activities of the Kookabuka Company during the most recent year:
manufacturing overhead costs incurred during the year:
property taxes1600
utilities, factory2600
indirect labour5100
depreciation, factory13,000
insurance, factory2500
total actual costs24,800
other costs incurred during the year:
purchases of raw materials15,000
direct labour cost22,000
inventories:
raw materials, beginning5000
raw materials, ending4400
work in process, beginning3500
work in process, ending4500
The company uses a predetermined overhead rate to charge overhead cost to production. The rate for the year just completed was $4.00 per machine hour; a total of 6,000 machine hours were recorded for the year, so $800 manufacturing overhead cost was underapplied.
What would a schedule of cost of goods manufactured for the year look like?
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