Question

Please help really having a hard time

prepare a schedule of cost goods manufactured

Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Raw materials Work in process Finished Goods Beginning Ending Balance Balance $ 14,800 $22,880 $ 27,800 $ 9,800 $ 62,800 $77,880 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,800 machine-hours and incur $290,680 in manufacturing overhead cost. The following transactions were recorded for the year: • Raw materials were purchased, $315,800 • Raw materials were requisitioned for use in production, $307,800 ($280,200 direct and $27.600 indirect). . The following employee costs were incurred: direct labor, $377,800; indirect labor, $96,800, and administrative salaries, $172,800. • Selling costs, $147,800. • Factory utility costs. $10.800. • Depreciation for the year was $175,000 of which $170.000 is related to factory operations and $5,000 is related to selling, general, and administrative activities • Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,160 machine- hours • Sales for the year totaled $1,310,000 Required: a. Prepare a schedule of cost of goods manufactured b. Was the overhead underapplied or overapplied? By how much? c. Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold Complete this question by entering your answers in the table below. Required A Required B Required Prey 3 of 20 Next >

Answer 1

Baab Corporation
Schedule of cost of goods manufactured
Direct materials :
Beginning raw materials inventory	14800
Add: Purchase of raw materials	315800
Total raw materials available	330600
Less: Ending raw materials inventory	22800
Raw materials used in production	307800
Less: Indirect materials included in manufacturing overhead	27600	280200
Direct labor		377800
Manufacturing overhead applied to work in process		293776
Total manufacturing costs		951776
Add: Beginning work in process inventory		27800
Total cost of work in process inventory		979576
Less: Ending work in process inventory		9800
Cost of goods manufactured		969776

Predetermined overhead rate = Estimated manufacturing overhead cost / Estimated machine hours = 290680 / 33800	8.60	per machine hour
Manufacturing overhead applied to work in process = Predetermined overhead rate * Actual machine hours = 8.60 * 34160	293776