Please signify the answers clearly end of the question. Please signify the answe
ID: 2602531 • Letter: P
Question
Please signify the answers clearly end of the question.
Please signify the answers clearly end of the question. Chapter 03 Poblems instructions help 3· 25.00 point The following cost data relate to the manufacturing activities of Chang Company during the just completed year 6000 Purchases o aw 410 000 2100 31000 The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $25 per machine- hour. A total of 20,700 machine-hours was recorded for the year. Required: 1 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
Actual manufacturing overhead costs $ 507500
Manufacturing overhead applied: 20700 MH × $25 per MH $ 517500
Overapplied overhead cost $ 10000
2.Prepare a schedule of cost of goods manufactured for the year
Chang Company
Schedule of Cost of Goods Manufactured
Direct materials:
Raw materials inventory, beginning $21000
Add: Purchases of raw materials 410000
Raw materials available for use 431000
Less: Raw materials inventory, ending 31000
Raw materials used in production 400000
Less: Indirect materials 16000 $384000
Direct labor 70000
Manufacturing overhead cost applied to work in process 517500
Total manufacturing costs 971500
Add: Work in process inventory, beginning 41000
1012500
Less: Work in process inventory, ending 71000
Cost of goods manufactured $941500