Reference no: EM132548648
The following cost data relate to the manufacturing activities of Jako Company during the just completed year:
Manufacturing overhead costs incurred:
Indirect materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,000
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520,000
Property taxes, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,000
Utilities, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280,000
Depreciation, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 960,000
Insurance, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Total actual manufacturing overhead costs incurred . . . . . . . . . .. . . $1,892,000
Other costs incurred:
Purchases of raw materials (both direct and indirect) . . . . . . . . . . . . $1,600,000
Direct labor cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $240,000
Inventories:
Raw materials, beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $80,000
Raw materials, ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $120,000
Work in process, beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $160,000
Work in process, ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $280,000
The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $100 per machine-hour. A total of 77,600 machine-hours were recorded for the year.
Required:
Question 1. Prepare schedule of cost of goods manufactured for the year.
Question 2. Compute the amount of underapplied or overapplied overhead cost for the year. Close it in the Cost of Goods Sold.
Question 3. Prepare schedule of cost of goods sold for the year, showing the adjusted amount.