Saved The following cost data relate to the manufacturing activities of Chang Co

Question

Saved The following cost data relate to the manufacturing activities of Chang Company during the just completed year Manufacturing overhead costs incurred: Indirect materials Indirect labor Property taxes, factory Utilities, factory Depreciation, factory Insurance, factory Total actual monufacturing overhead costs incurred 5 16,3e6 143,8e0 9,380 83,860 149,180 11,309 Other costs incurred purchases of rau materials (both direct and indirect) Direct labor cost 413,009 $ 73,800 Inventories: Raw materials, beginning Raw materials, ending s 21,300 $ 31,30e s 41,300 5 71,300 Work in process, beginn Work in process, ending The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 21,000 machine-hours were used during the year Requirecd Compute the amount of underapplied or overapplied overhead cost for the year Prepare a schedule of cost of goods manufactured for the year Complete this question by entering your answers in the tabs below ea ired 1 equired 2

Explanation / Answer

A Predetermined OH Rate 20.00 Per MH B Total Machine Hours worked 21000 A*B Total Applied Overhead 420000 Actual Overheads 412000 Since Applied overheads are more than actual overheads. They are overapplied Total Applied Overhead 420000 Actual Overheads 412000 Overapplied by 8000 2 Chang Company Schedule of Cost of Goods Manufactured Direct Material: Opening Raw Material 21300 Add: Purchase of Raw Material 413000 Total Raw Material Available 434300 Less: Closing Raw Material 31300 Raw Material used in Production 403000 Direct Labor Cost 73000 Manufacturing OH-Actual 412000 Total Costs Incurred 888000 Add: Opening WIP 41300 Less: Closing WIP 71300 Total Cost of Goods Manufactured 858000

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