Question

1. Compute the amount of underapplied or overapplied overhead cost for the year.

The following cost data relate to the manufacturing activities of Black Company during the just completed year: $ 2,800 5,000 9,800 23,900 5,800 $47,300 Manufacturing overhead costs incurred: Property taxes, factory Utilities, factory Indirect labor Depreciation, factory Insurance, factory Total actual manufacturing overhead costs Other costs incurred: Purchases of raw materials Direct labor cost Inventories: Raw materials, beginning Raw materials, ending Work in process, beginning $32,800 $39,900 $ 8,200 $ 6,600 $ 5,800 $ 7,800 Work in process, ending 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 10,100 machine-hours was recorded for the year. All raw materials ultimately become direct materials-none are classified as indirect materials.

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

Answer 1

1 Answer - Il computation of Overhead undevapplied or over a pplied ceste for year Over applied or underapplied of Overhead costs - When 09 -organisation starts operations of business, i estimates its manyfe styring overheads Costs and other. Afley. the completion of such process company gets actual figyres of costs that incurred on the basis of such information the overhead unter applict or overapplied will be decited. If Budgeted cost > Actual Cost - Overapplied overheal - Budgeted Cost a Actual Git underapplied Overhead

In the question, Budgeted overhead Cost y Achygl overhead Gita 10400 hoyus x 5: 47300 $ 50500 in Overhemd Overzeelied 95 Bydgeter overheads / Adual overhea). - $ 50500 / $ 47300 Overapplied overhead = _$ (50500 - 47300) = $ 3200 · Schedule of Cost of Goods manufactured Cost of Goods manufactured is the total amount that company of 994 factyues goots It is calculated by Cost of goods : Openia q. t Raw Mately) + Direct + Magufacturing - Ending Magyfytyrel WIP Used labout 6/h Applied WIP Block Company Schedugle of Cost of Good Many factured 1011($) lamt($) 5800 Particulars Nork in process at Begiging Direct Matulis Opening_Row Material Inventory + Tyrch are of Raw materiala -- Ending Inventory of Raw Mateo 14) 8200 32800 34400 39900 Direct Labour Myqy factyling Gsl Applied to WIP. 50500 Work-in focess (Ending) (7800) cost of croads Manufaclywed (1+2+3+4-5) 122800