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?