Reference no: EM132603640

The following costs are attributed to the Quilt Company:

Purchase of raw materials (all direct)             $291,100

Direct labour cost                                       $141,800

Manufacturing overhead costs                       $198,100

Inventories:

Beginning raw materials                        $10,000

Ending raw materials                              $900

Beginning work in process                    $20,000

Ending work in process                         $15,900

Beginning finished goods                        $20,000

Ending finished goods                              $6,800

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?