ScholarMatic: Explanation & Answer
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The following cost data relate to the manufacturing activities of Black Company during the just completed year: |
| Manufacturing overhead costs: | ||
| Property taxes, factory | $ | 2,900 |
| Utilities, factory | 4,900 | |
| Indirect labor | 9,900 | |
| Depreciation, factory | 23,800 | |
| Insurance, factory | 5,800 | |
| Total actual manufacturing overhead costs | $ | 47,300 |
| Other costs incurred: | ||
| Purchases of raw materials | $ | 32,200 |
| Direct labor cost | $ | 39,900 |
| Inventories: | ||
| Raw materials, beginning | $ | 8,100 |
| Raw materials, ending | $ | 6,300 |
| Work in process, beginning | $ | 5,300 |
| Work in process, ending | $ | 6,900 |
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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 10,600 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. (Input the amount as a positive value.) |
| (Click to select)OverappliedUnderapplied overhead cost | $ |
| 2. |
Prepare a schedule of cost of goods manufactured for the year. (Input all amounts as positive values.) |
| Black Company Schedule of Cost Goods Manufactured |
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| Direct materials: | ||
| (Click to select)Raw materials inventory, endingUtilities, factoryManufacturing overhead cost applied to work in processRaw materials inventory, beginningWork in process, beginning | $ | |
| (Click to select)DeductAdd : (Click to select)Manufacturing overhead costWork in process, beginningRaw materials inventory, endingPurchase of raw materialsWork in process, ending | ||
| Raw materials available for use | ||
| (Click to select)DeductAdd : (Click to select)Work in process, beginningManufacturing overhead costPurchase of raw materialsWork in process, endingRaw materials inventory, ending | ||
| Raw materials used in production | $ | |
| (Click to select)Direct laborIndirect laborUtilities, factoryRaw materials inventory, beginningRaw materials inventory, ending | ||
| (Click to select)Manufacturing overhead cost applied to work in processUtilities, factoryRaw materials inventory, endingRaw materials inventory, beginningWork in process, beginning | ||
| Total manufacturing cost | ||
| (Click to select)DeductAdd : (Click to select)Work in process, endingManufacturing overhead costRaw materials inventory, endingWork in process, beginningPurchase of raw materials | ||
| (Click to select)DeductAdd : (Click to select)Work in process, endingWork in process, beginningRaw materials inventory, endingManufacturing overhead costPurchase of raw materials | ||
| Cost of goods manufactured | $ | |
ScholarMatic: Explanation & Answer
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