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Chapter 4-2 The following cost data relate

Question : Chapter 4-2 The following cost data relate : 3170

Chapter 4-2

The following cost data relate to the manufacturing activities of Black Company during the just completed year:

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 11,600 machine-hours was recorded for the year. All raw materials ultimately become direct materials—none are classified as indirect materials.

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 using the indirect method. (Enter all deductions as a negative.)

 

 

 

Manufacturing overhead costs incurred:

 

 

Property taxes, factory

$

2,900

Utilities, factory

 

4,800

Indirect labor

 

9,800

Depreciation, factory

 

23,900

Insurance, factory

 

5,800

Total actual manufacturing overhead costs

$

47,200

Other costs incurred:

 

 

Purchases of raw materials

$

31,400

Direct labor cost

$

41,000

Inventories:

 

 

Raw materials, beginning

$

8,200

Raw materials, ending

$

6,000

Work in process, beginning

$

5,700

Work in process, ending

$

7,000

 

     

 

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