JOB ORDER COSTING
The following cost data relate to the manufacture activities ofthe Aquarius Company during 2018:
Manufacturing overhead costs incurred during theyear:
Property taxes $1,500
Utilities, factory 2,500
Indirect labor 5,000
Depreciation,factory 12,000
Insurance, factory 3,000
Total actualcosts $24,000
Other costs incurred during the year:
Purchases of rawmaterials $16,000
Direct labor cost 20,000
Inventories:
Raw materials, January 1, 2018 $ 4,000
Raw materials, December 31, 2018 $ 3,500
Work in Process, January 1, 2018 $ 3,000
Work in process, December 31, 2018 $ 3,750
The company uses a predetermined overhead rate to chargeoverhead cost to production. The rate for 2018 was $ 5.00 permachine hour, a total of 5,000 machine hours were used for theyear.
REQUIRED:
1. Compute the amount of under or over appliedoverhead cost for the year 2018.
2. Prepare a schedule of cost of goods manufacturedfor 2018.
JOB ORDER COSTING
The following cost data relate to the manufacture activities ofthe Aquarius Company during 2018:
Manufacturing overhead costs incurred during theyear:
Property taxes $1,500
Utilities, factory 2,500
Indirect labor 5,000
Depreciation,factory 12,000
Insurance, factory 3,000
Total actualcosts $24,000
Other costs incurred during the year:
Purchases of rawmaterials $16,000
Direct labor cost 20,000
Inventories:
Raw materials, January 1, 2018 $ 4,000
Raw materials, December 31, 2018 $ 3,500
Work in Process, January 1, 2018 $ 3,000
Work in process, December 31, 2018 $ 3,750
The company uses a predetermined overhead rate to chargeoverhead cost to production. The rate for 2018 was $ 5.00 permachine hour, a total of 5,000 machine hours were used for theyear.
REQUIRED:
1. Compute the amount of under or over appliedoverhead cost for the year 2018.
2. Prepare a schedule of cost of goods manufacturedfor 2018.
Related questions
The following cost data relate to the manufacturing activitiesof Chang Company during the just completed year: |
| Manufacturingoverhead costs incurred: | ||
| Indirect materials | $ | 15,800 |
| Indirect labor | 138,000 | |
| Property taxes,factory | 8,800 | |
| Utilities, factory | 78,000 | |
| Depreciation,factory | 150,600 | |
| Insurance, factory | 10,800 | |
| Total actualmanufacturing overhead costs incurred | $ | 402,000 |
| Other costsincurred: | ||
| Purchases of rawmaterials (both direct and indirect) | $ | 408,000 |
| Direct labor cost | $ | 68,000 |
| Inventories: | ||
| Raw materials,beginning | $ | 20,800 |
| Raw materials,ending | $ | 30,800 |
| Work in process,beginning | $ | 40,800 |
| Work in process,ending | $ | 70,800 |
The company uses a predetermined overhead rate to apply overheadcost to jobs. The rate for the year was $20 per machine-hour. Atotal of 20,500 machine-hours was recorded for the year. |
| 1.Compute the amount of underapplied or overapplied overheadcost for the year.
|
The following cost data relate to the manufacturing activitiesof Black Company during the just completed year: |
| Manufacturingoverhead costs: | ||
| Property taxes,factory | $ | 3,000 |
| Utilities, factory | 5,000 | |
| Indirect labor | 10,000 | |
| Depreciation,factory | 24,000 | |
| Insurance, factory | 6,000 | |
| Total actualmanufacturing overhead costs | $ | 48,000 |
| Other costsincurred: | ||
| Purchases of rawmaterials | $ | 32,000 |
| Direct labor cost | $ | 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 predetermined overhead rate to apply overheadcost to jobs. The rate for the year was $5 per machine-hour; atotal of 10,000 machine-hours was recorded for the year. All rawmaterials ultimately become direct materialsânone are classified asindirect materials. |
| Required: |
| 1. | Compute the amount of underapplied or overapplied overhead costfor the year. |
| 2. | Prepare a schedule of cost of goods manufactured for the yearusing the indirect method. (Enter all deductions as anegative.) |
