Question
The following cost data relate to the manufacturing activities of Jako Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials . .
The following cost data relate to the manufacturing activities of Jako Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,000 Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520,000 Property taxes, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,000 Utilities, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280,000 Depreciation, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 960,000 Insurance, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 Total actual manufacturing overhead costs incurred . . . . . . . . . .. . . $1,892,000 Other costs incurred: Purchases of raw materials (both direct and indirect) . . . . . . . . . . . . $1,600,000 Direct labor cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $240,000 Inventories: Raw materials, beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $80,000 Raw materials, ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $120,000 Work in process, beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $160,000 Work in process, ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $280,000 The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $100 per machine-hour. A total of 77,600 machine-hours were recorded for the year. Required: 1. Prepare a schedule of cost of goods manufactured for the year. 2. Compute the amount of underapplied or overapplied overhead cost for the year. Close it in the Cost of Goods Sold. 3- Prepare a schedule of cost of goods sold for the year, showing the adjusted amount.
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