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The following costs are attributed to the Quilt Company: Purchase of raw materials (all direct) $287,300 Direct labour cost $129,800 Manufacturing overhead costs $156,260 Inventories:
The following costs are attributed to the Quilt Company:
Purchase of raw materials (all direct) | $287,300 |
Direct labour cost | $129,800 |
Manufacturing overhead costs | $156,260 |
Inventories: |
|
Beginning raw materials | $10,000 |
Ending raw materials | $3,000 |
Beginning work in process | $20,000 |
Ending work in process | $2,800 |
Beginning finished goods | $20,000 |
Ending finished goods | $3,700 |
Quilt Company used a 125% predetermined overhead rate based on direct labour cost.
Required:
- Calculate the cost of goods manufactured.
- What was the cost of goods sold before adjusting for any under or over applied overhead?
- By how much was manufacturing overhead cost under or over applied?
- Would the summary journal entry to close any under or over applied manufacturing overhead cost be a debit or credit to COGS?
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