Question
The following cost data relate to the manufacturing activities of Black Company during the just completed year: Manufacturing overhead costs: Property taxes, factory $ 2,800
The following cost data relate to the manufacturing activities of Black Company during the just completed year: |
Manufacturing overhead costs: | ||
Property taxes, factory | $ | 2,800 |
Utilities, factory | 5,000 | |
Indirect labor | 9,900 | |
Depreciation, factory | 23,900 | |
Insurance, factory | 6,000 | |
Total actual manufacturing overhead costs | $ | 47,600 |
Other costs incurred: | ||
Purchases of raw materials | $ | 31,600 |
Direct labor cost | $ | 39,300 |
Inventories: | ||
Raw materials, beginning | $ | 8,200 |
Raw materials, ending | $ | 6,100 |
Work in process, beginning | $ | 5,500 |
Work in process, ending | $ | 7,200 |
The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 10,900 machine-hours was recorded for the year. All raw materials ultimately become direct materialsnone are classified as indirect materials. |
Required: |
1. | Compute the amount of underapplied or overapplied overhead cost for the year. (Input the amount as a positive value.) |
(Click to select)OverappliedUnderapplied overhead cost | $ |
2. | Prepare a schedule of cost of goods manufactured for the year. (Input all amounts as positive values.) |
Black Company Schedule of Cost Goods Manufactured | ||
Direct materials: | ||
(Click to select)Manufacturing overhead cost applied to work in processRaw materials inventory, endingRaw materials inventory, beginningUtilities, factoryWork in process, beginning | $ | |
(Click to select)DeductAdd : (Click to select)Manufacturing overhead costWork in process, endingRaw materials inventory, endingWork in process, beginningPurchase of raw materials | ||
Raw materials available for use | ||
(Click to select)AddDeduct : (Click to select)Work in process, beginningRaw materials inventory, endingPurchase of raw materialsManufacturing overhead costWork in process, ending | ||
Raw materials used in production | $ | |
(Click to select)Indirect laborRaw materials inventory, beginningRaw materials inventory, endingDirect laborUtilities, factory | ||
(Click to select)Raw materials inventory, endingManufacturing overhead cost applied to work in processRaw materials inventory, beginningWork in process, beginningUtilities, factory | ||
Total manufacturing cost | ||
(Click to select)AddDeduct : (Click to select)Purchase of raw materialsWork in process, beginningWork in process, endingManufacturing overhead costRaw materials inventory, ending | ||
(Click to select)AddDeduct : (Click to select)Work in process, endingRaw materials inventory, endingWork in process, beginningManufacturing overhead costPurchase of raw materials | ||
Cost of goods manufactured | $ | |
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