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The following cost data relate to the manufacturing activities of Black Company during the just completed year: $ Manufacturing overhead costs: Property taxes, factory Utilities,
The following cost data relate to the manufacturing activities of Black Company during the just completed year: $ Manufacturing overhead costs: Property taxes, factory Utilities, factory Indirect labour Depreciation, factory Insurance, factory 3,100 5,150 10,200 24,250 6,200 Total actual manufacturing overhead costs $ 48,900 $ $ 32,500 40,700 Other costs incurred: Purchases of raw materials. Direct labour cost Inventories: Raw materials, beginning Raw materials, ending Work in process, beginning Work in process, ending ta ta ta ta 8,200 7,100 6,150 7,700 The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $5 per machine- hour, a total of 10,000 machine-hours were recorded for the year. All raw materials ultimately become direct materials,none 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. BLACK COMPANY Schedule of Cost of Goods Manufactured Direct materials: 0 0 Raw materials used in production Direct labour Total manufacturing cost 0 $ 0 Cost of goods manufactured $ 0
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