Question

The following cost data relate to the manufacturing activities of Black Company during the just completed year Manufacturing overhead costs incurred: 2,900 5,000 9,900 23,900 5,900 Property taxes, factory Utlities, factory Indirect labor Depreciation, factory Insurance, factory Total actual manufacturing overhead costs $47.800 Other costs incurred: Purchases of raw materials Direct labor cost $32.400 $39.500 Inventories Raw materials, beginning Raw materials, ending Work in process, beginning S 8.800 8 200 s 6.200 Work in process, ending s 6.600

Answer 1

Ans:

1)Calculate the amount of under applied or over applied overhead cost for the year:

When applied overhead is greater than actual manufacturing overhead, difference will be over-applied overhead.

When applied overhead is lesser than actual manufacturing overhead, difference will be under-applied overhead.

Particulars	Amount
Actual Manufacturing overhead	$47,600
less: Budgeted manufacturing overhead ($5*10,700hours)	$53,500
Over-applied Manufacturing overhead.	$5,900

2) Black company

Schedule of Cost of Goods Manufactured:

	Amount($)	Amount($)
Direct Materials
Opening Inventories	8,800
Add: Purchase	32,400
Raw Material Available for Use	41,200
Less: Closing Inventory of Raw Material	(6,200)
Raw Material Used in Production		35,000
Add: Direct Labor		39,500
Add: Manufacturing Overhead Applied		53,500
Total Manufacturing Cost		128,000
Add: Opening Inventory of WIP		5,200
Less: Closing Inventory of WIP		(6,600)
Cost of Goods Manufactured		$126,600