Question

The following cost data relate to the manufacturing activities of Chang Company during the just completed year: $ 15,300 133,000 Manufacturing overhead costs incurred: Indirect materials Indirect labor Property taxes, factory Utilities, factory Depreciation, factory Insurance, factory 8,300 73,000 152,100 10,300 Total actual manufacturing overhead costs incurred $ 392,000 $403,000 $ 63,000 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 $ 20,300 $ 30,300 $ 40,300 $ 70,300

Answer 1

1) Applied overhead = 20000*20 = 400000

Actual overhead = 392000

Over applied overhead = 400000-392000 = 8000

2) Schedule of cost of goods manufactured

Direct material
Beginning raw material	20300
Raw material purchase	403000
Raw material available for use	423300
Less: Ending raw material	-30300
Direct material used in production		393000
Direct labor		63000
Manufacturing overhead applied		400000
Total manufacturing cost		856000
Beginning work in process		40300
Total Cost of work in process		896300
Less: Ending work in process		-70300
Cost of goods manufactured		826000