The following cost of data to the manufacturing activities of Black Company during the just completed the year, Manufacturing Cost; Property taxes, factory……………………………….. $3,000 Utilities, factory……………………………………… 5,000 Indirect Labor………………………………………… 10,000 Deprecation, factory…………………………………. 24,000 Insurance, factory……………………………………. 6,000 Total Manufacturing Overhead Costs………………… $48,000 Other Costs incurred; Purchase of raw materials…………………………… $32,000 Direct Labor Costs………………………………….. $40,000 Inventories: Raw materials, beginning…………………………… $8,000 Raw materials, ending……………………………… 7,000 Work in Process, beginning……………………….. 6,000 Work in Process, ending…………………………… 7,500 The company uses a predetermine overhead rate to apply overhead job cost. The rate for the year was $5 per machine hour, a total of 10,000 machine-hours was recorded for the year. Required: Compute the Cost applied and decide for cost is over applied or under applied. Compute Cost of Goods Manufacturer with adjustment of estimated and actual cost.
The following cost of data to the manufacturing activities of Black Company during the just completed the year,
Property taxes, factory……………………………….. $3,000
Utilities, factory……………………………………… 5,000
Indirect Labor………………………………………… 10,000
Deprecation, factory…………………………………. 24,000
Insurance, factory……………………………………. 6,000
Total Manufacturing
Other Costs incurred;
Purchase of raw materials…………………………… $32,000
Direct Labor Costs………………………………….. $40,000
Inventories:
Raw materials, beginning…………………………… $8,000
Raw materials, ending……………………………… 7,000
Work in Process, beginning……………………….. 6,000
Work in Process, ending…………………………… 7,500
The company uses a predetermine overhead rate to apply overhead
Required:
- Compute the Cost applied and decide for cost is over applied or under applied.
- Compute Cost of Goods Manufacturer with adjustment of estimated and actual cost.
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