Reference no: EM132537001

The following costs are attributed to the Quilt Company:

Purchase of raw materials (all direct)               $297,100

Direct labour cost                                      $141,800

Manufacturing overhead costs                    $178,160

Inventories:

Beginning raw materials                            $10,000

Ending raw materials                                    $900

Beginning work in process                          $20,000

Ending work in process                              $11,800

Beginning finished goods                            $20,000

Ending finished goods                                  $5,800

Quilt Company used a 120% predetermined overhead rate based on direct labour cost.

Required:

Question 1. Calculate the cost of goods manufactured.

Question 2. What was the cost of goods sold before adjusting for any under or over applied overhead?

Question 3. By how much was manufacturing overhead cost under or over applied?

Question 4. Would the summary journal entry to close any under or over applied manufacturing overhead cost be a debit or credit to COGS?