Question

The following cost data relate to the manufacturing activities of Black Company during the just completed year:

Manufacturing overhead costs incurred:
Property taxes, factory	$	2,900
Utilities, factory		4,900
Indirect labor		10,000
Depreciation, factory		23,900
Insurance, factory		5,800
Total actual manufacturing overhead costs	$	47,500
Other costs incurred:
Purchases of raw materials	$	31,900
Direct labor cost	$	40,400
Inventories:
Raw materials, beginning	$	8,700
Raw materials, ending	$	6,700
Work in process, beginning	$	5,700
Work in process, ending	$	7,900

The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 10,400 machine-hours was recorded for the year. All raw materials ultimately become direct materials—none are classified as indirect materials.

1. Prepare a schedule of cost of goods manufactured for the year using the indirect method. (Enter all deductions as a negative.)

     

Answer 1

solution for the year using cost of goods manufactured indirect method i the particulars Raw material inventory, Beginning -Addi- purchase of raw material Raw material available for use 8700 31900 40 600 Less Raw material inventory ending. (6700) Direct Direct material labor. 33900 40400 Manufacturing overhead cost applied 5x 10400 59000 Total manufacturing cost 126 300 Add's work in process, begining. 5700 13200 Less work in process, ending. 69000) cost of goods manufactured 124100 cost of goods manufactured for the year is samen 100