period as well as the anou anufactured ILOs IU The following cost data relate to

Question

period as well as the anou anufactured ILOs IU The following cost data relate to the manufacturing activities of Black just-completed year Company duringn EXERCISE S-6 Applying Overhead: Cost of Goods Manufactured Manufacturing overhead costs 3000 5.000 Property taxes, factory Utlies, factory.. ndirect labour. Depreciation, factory. Insurance, factory.... Total actual manufacturing overhead costs. 6000 $48.000 Other costs incurred Purchases of raw materials. $40000 8,000 Work in process, beginning. 6,000 Inventories Raw materials, beginning Raw materials ending. Work in process, ending.... 7,500 The company uses a predetermined overhead rate to apply overhead cost to The rate for the year was s5 per machine-hour: a total of 10,000 machine-hou recorded for the year. All raw materials ultimately become direct materials-none are sified as indirect materials. equired Compute the amount of underapplied or overapplied overhead cost for the year Prepare a schedule of cost of goods manufactured for the year.

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount Actual Manufacturing overhead costs                 48,000.00 Manufacturing overhead applied = 10000 * 5                 50,000.00 Overapplied Overhead                   2,000.00 Statement showing cost of goods Manufactured Particulars Amount Beginning inventory, raw materials                     8,000.00 Plus: Purchases of raw materials                 32,000.00 Raw materials available for use = Beg + Purchase                 40,000.00 Less: Ending raw materials inventory                   (7,000.00) Cost of direct raw materials used                 33,000.00 Add Direct Labor                   40,000.00 Add Manufacturing overhead                 48,000.00 Total manufacturing costs              121,000.00 Plus: Beginning work-in-process inventory                   6,000.00 Total work in process                127,000.00 Less: Ending work-in-process inventory                 (7,500.00) Cost of Goods Manufactured              119,500.00

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