Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following cost data relate to the manufacturing activities of Black Company during the just-completed year: Manufacturing overhead costs: Property taxes, factory $ 4,400 Utilities,

The following cost data relate to the manufacturing activities of Black Company during the just-completed year:

Manufacturing overhead costs:
Property taxes, factory $ 4,400
Utilities, factory 7,100
Indirect labour 12,800
Depreciation, factory 27,500
Insurance, factory 8,800
Total actual manufacturing overhead costs $ 60,600
Other costs incurred:
Purchases of raw materials. $ 39,000
Direct labour cost $ 49,800
Inventories:
Raw materials, beginning $ 10,800
Raw materials, ending $ 8,400
Work in process, beginning $ 8,100
Work in process, ending $ 10,300

The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $6 per machine-hour; a total of 11,000 machine-hours were 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.

2. Prepare a schedule of cost of goods manufactured for the year.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Fraud Audit Responding To The Risk Of Fraud In Core Business Systems

Authors: Leonard W. Vona

1st Edition

0470647264, 978-0470647264

More Books

Students also viewed these Accounting questions