Question

Ti Chapter 3 - Homework ata relate to the manufacturing activities of Chang Company during the just completed year: $ 16,400 144,000 9,400 84,000 210,900 11,400 $ 476, 100 Manufacturing overhead costs incurred: Indirect materials Indirect labor Property taxes, factory Utilities, factory Depreciation, factory Insurance, factory Total actual manufacturing overhead costs incurred Other costs incurred: Purchases of raw materials (both direct and indirect) Direct labor cost Inventories: Raw materials, beginning Raw materials, ending Work in process, beginning Work in process, ending $414,000 $ 74,000 $ 21,400 $ 31,400 $ 41,400 $ 71,400 The company uses a predetermined overhead rate of $23 per machine-hour to apply overhead cost to jobs. A total of 21,100 machine- hours were used during the year. Required: 1. Compute the amount of underapplied or overapplied overhead cost for the year. 2. Prepare a schedule of cost of goods manufactured for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the amount of underapplied or overapplied overhead cost for the year. overhead cost

Answer 1

Solution: Requirement: 1 Overapplied Overhead cost 9200 Explanation: Actual manufacturing overhead costs Manufacturing overhead applied: (21100 Machine hours * $23 overhead rate) Overapplied overhead cost 476100 485300 9200

Requirement: 2 Chang Company Schedule of cost of Goods Manufactured Direct materials: Raw materials Inventory, beginning Add: Purchase of raw materials Total Raw materials available Less: Raw materials inventory, ending Raw materials used in production Less: Indirect materials Direct labor Manufacturing overhead cost applied to work in process Total manufacturing costs Add: Work in process inventory, beginning 21400 414000 435400 31400 404000 164001 387600 74000 485300 946900 41400 9883001 71400 916900 Less: Work in process inventory, ending Cost of goods manufactured