Question

The following cost data relate to the manufacturing activities of Chang Company during the just completed year H $ 16,30 141.00 9. ect Overhead costs incur Indirect materials Indirect labor Property taxes, factory utilities Factory Depreciation factory Insurance, Factory Total actual manufacturing our costs incurred Other costs incurred: Purchases of w aterials (both direct and indirect 149.100 aterials, beginning Rasteriais ending Work in process, being The company uses a predetermined overhead rate of $20 perma machine hours were used during the ye A total of 21000 Required 1. Comoute the amount of underapplied or overappred overhead cost 2 Pranara achandantent of annemani dartired for the war

Answer 1

1.

Overapplied

Overhead Cost

$8,000

Explanation;

Actual Manufacturing Overhead Cost	$412,000
Manufacturing Overhead Applied $21,000 × $20	$420,000
Overapplied Overhead Cost	$8,000

2.

Chang Company Schedule of Cost of Goods Manufactured

Particulars	Amount	Amount
Direct Material;
Raw Materials Inventory Beginning	$21,300
Add: Purchase of Raw Materials	$413,000
Raw Material Available for Use	$434,300
Less: Raw Materials Inventory Ending	$31,300
Raw Materials Used In Production	$403,000
Less: Indirect Material	$16,300	$386,700
Direct Labor		$73,000
Manufacturing Overhead Applied in Work in Process		$420,000
Total Manufacturing Cost		$879,700
Add: Work In Process Inventory Beginning		$41,300
		$921,000
Less : Work in Process Inventory Ending		$71,300
Cost of Goods Sold		$849,700