Reference no: EM132741445

The following costs are attributed to the Quilt Company:

Purchase of raw materials (all direct) $296,100
Direct labour cost                            $121,800
Manufacturing overhead costs           $178,260

Inventories:

Beginning raw materials   $10,000
Ending raw materials        $7,000
Beginning work in process  $20,000
Ending work in process       $11,100
Beginning finished goods      $20,000
Ending finished goods           $5,100

Quilt Company used a 130% predetermined overhead rate based on direct labour cost.

Problem 1: Calculate the cost of goods manufactured.

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

Problem 3: By how much was manufacturing overhead cost under or over applied?

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