Thursday, 10 April 2014

Exercise 2-17 Applying Overhead; Cost of Goods Manufactured [LO5, LO6, LO8] [The following information applies to the questions displayed below.] The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials $1,200 Indirect labor 10,000 Property taxes, factory 2,900 Utilities, factory 4,900 Depreciation, factory 23,900 Insurance, factory 5,900 Total actual manufacturing overhead costs incurred $48,800 Other costs incurred: Purchases of raw materials(both direct and indirect) $32,600 Direct labor cost $39,100 Inventories: Raw materials, beginning $8,400 Raw materials, ending $6,300 Work in process, beginning $5,900 Work in process, ending $6,500 The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $5 per machine-hour. A total of 11,300 machine-hours was recorded for the year.

Exercise 2-17 Applying Overhead; Cost of Goods Manufactured [LO5, LO6, LO8]
[The following information applies to the questions displayed below.]

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

  Manufacturing overhead costs incurred:
       Indirect materials $1,200  
       Indirect labor 10,000  
       Property taxes, factory 2,900  
       Utilities, factory 4,900  
       Depreciation, factory 23,900  
       Insurance, factory
5,900  
       Total actual manufacturing overhead costs incurred
$48,800  
  Other costs incurred:
       Purchases of raw materials(both direct and indirect) $32,600  
       Direct labor cost $39,100  
  Inventories:
       Raw materials, beginning $8,400  
       Raw materials, ending $6,300  
       Work in process, beginning $5,900  
       Work in process, ending $6,500  

The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $5 per machine-hour. A total of 11,300 machine-hours was recorded for the year.
Exercise 2-17 Requirement 2
Requirement 2:
Prepare a schedule of cost of goods manufactured for the year. (Input all amounts as positive values. Omit the "$" sign in your response.)

Chang Company
Schedule of Cost Goods Manufactured
  Direct materials:
  Raw materials inventory, beginning $  
  Add : Purchase of raw materials
 
  Raw materials available for use  
  Deduct : Raw materials inventory, ending
 
  Raw materials used in production  
  Deduct : Indirect materials
 
$  
  Direct labor  
  Manufacturing overhead cost applied to work in process
 
  Total manufacturing cost  
  Add : Work in process, beginning
 
    
  Deduct : Work in process, ending
 
  Cost of goods manufactured
$