Question

Required information [The following information applies to the questions displayed below.] The following data refer to Twisto Pretzel Company for the year 20x1. Work-in-process inventory, 12/31/x0 Selling and administrative salaries Insurance on factory and equipment Work-in-process inventory, 12/31/xl Finished-goods inventory, 12/31/x0 Cash balance, 12/31/x1 Indirect material used Depreciation on factory equipment Raw-material inventory, 12/31/x0 Property taxes on factory Finished-goods inventory, 12/31/x1 Purchases of raw material in 20x1 Utilities for factory Utilities for sales and administrative offices Other selling and administrative expenses Indirect-labor cost incurred Depreciation on factory building Depreciation on cars used by sales personnel Direct-labor cost incurred Raw-material inventory, 12/31/x1 Accounts receivable, 12/31/x1 Rental for warehouse space to store raw material Rental of space for company president's office Applied manufacturing overhead Sales revenue Income tax expense $ 8,100 13,700 3,600 8,300 14,000 7,000 4,900 2,100 10,200 2,400 15,200 38,800 6,000 2,400 4,000 29,000 3,800 1,200 79,000 11,000 4,200 3,000 1,600 58,000 205,800 5,100

Answer 1

Schedule of Cost of Goods Manufactured Direct materials used: Raw materials, beginning 10200 Add: Purchases of raw materials 38800 Raw materials available for use 49000 Less: Raw materials, ending 11000 Raw materials used in production 38000 Direct Labor 79000 Manufacturing Overhead: Insurance on factory and equipment Indirect materials used Depreciation on factory equipment Property taxes on factory Utilities for factory Indirect labor cost incurred Depreciation on factory building Rental for warehouses space Total actual manufacturing overhead Add: Overapplied overhead Overhead applied to work in process Total Manufacturing costs Add: WIP, Beginning 3600 4900 2100 2400 6000 29000 3800 3000 54800 3200 58000 175000 8100 183100 8300 174800 Less: WIP, Ending Cost of Goods Manufactured

Overapplied overhead = Applied overhead - Actual manufacturing overhead

= 58000 - 54800

= 3200