Question

The following cost data relate to the manufacturing activities of Chang Company during the just completed year Manufacturing overhead costs incurred: Indirect materials $ 15,200 Indirect labor Property taxes, factory Utilities, factory Depreciation, factory Insurance, factory Total actual manufacturing overhead costs incurred 132,eee 8,280 72,eee 152,400 10, 200 390,eee Other costs incurred: Purchases of raw materials (both direct and indirect) Direct labor cost 482,eee 62,0ee Inventories: Raw materials, beginning Raw materials, ending Work in process, beginning Work in process, ending 20,280 30,280 40,280 $ 70,28e The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 19,90 machine-hours were used during the year. 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 Prepare a schedule of cost of goods manufactured for the year. Chang Company Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Raw materials used in production C Total manufacturing costs Cost of goods manufactured Required 1 Required 2

Answer 1

Requirement: 1 Overapplied Overhead cost 8000 Explanation: Actual manufacturing overhead costs Manufacturing overhead applied: (19900 Machine hours * $20 overhead rate) Overapplied overhead cost 390000 398000 8000

Requirement: 2 Chang Company Schedule of cost of Goods Manufactured Direct materials: Raw materials Inventory, beginning Add: Purchase of raw materials Total Raw materials available Less: Raw materials inventory, ending Raw materials used in production Less: Indirect materials Direct labor Manufacturing overhead cost applied to work in process Total manufacturing costs Add: Work in process inventory, beginning 20200 402000 422200 30200 392000 15200 376800 62000 398000 836800 40200 877000 70200 806800 Less: Work in process inventory, ending Cost of goods manufactured