The following costs are attributed to the Quilt Company:

Purchase of raw materials (all direct) $297,100

Direct labour cost

Manufacturing overhead costs

Inventories:

Beginning raw materials

Ending raw materials Beginning work in process

Ending work in process

Beginning finished goods

Ending finished goods

S141,800

$175,260

S10,000

$5,000

S20,000

S10,800

S20,000 $4,800

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

Required:

7. Calculate the cost of goods manufactured.

& What was the cost of goods sold before adjusting for any under or over applied overhead? 9. By how much was manufacturing overhead cost under or

over applied?

10. Would the summary journal entry to close any under or over applied manufacturing overhead cost be a debit or credit to COGS?