The following costs are attributed to the Quilt Company:

Purchase of raw materials (all direct)

$296,000

Direct labour cost

$141,600

Manufacturing overhead costs

$166,260

Inventories:

Beginning raw materials

$9,000

Ending raw materials

$8,000

Beginning work in process

$20,000

Ending work in process

$15,600

Beginning finished goods

$20,000

Ending finished goods

$5,600

Quilt Company used a 120% predetermined overhead rate based on direct labour cost.

Required:

a-Calculate the cost of goods manufactured. (6 marks)

b-What was the cost of goods sold before adjusting for any under or over applied overhead? (2 marks)

C-Was the overheard overapplied or underapplied and by how much? (2 marks)

D-Indicate if the disposition of the over/underapplied will be a debt or a credit to the

GOGS? (2 marks)