Question

The following cost data relate to the manufacturing activities of Chang Company during the just completed year: points (8 02:38:57 $ 16,000 140,000 9,000 80,000 251,500 11,000 $ 507,500 Skipped 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 $ 410,000 eBook $ 21,000 $ 31,000 $ 41,000 $ 71,000 con Hint The company uses a predetermined overhead rate of $25 per machine-hour to apply overhead cost to jobs. A total of 20,700 machine-hours were used during the year. Print 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 Required 1 Required 2 >

Answer 1

Requirement 1

Overheads Overapplied

$ 10,000

Working

Overheads applied (20700 x 25)	$ 517,500
Actual overheads	$ 507,500
Overheads Overapplied	$ 10,000

Requirement 2

CHANG COMPANY
Cost of Goods manufactured
Direct Material
Raw material Inventory Beginning	$ 21,000
Raw material Purchased	$ 394,000
Raw material available for use	$ 415,000
Less: Raw material Inventory Ending	$ 31,000
Direct Material Used		$ 384,000
Direct labor		$ 70,000
Manufacturing Overheads applied		$ 517,500
Total manufacturing Cost		$ 971,500
Add: Beginning Work in Progress		$ 41,000
Total Cost of Work in Progress		$ 1,012,500
Less: Ending Work in progress		$ 71,000
Cost of Goods Manufactured		$ 941,500