Reference no: EM132463861

Question 1: Prepare a schedule of cost of goods manufactured for the year.        

 

The following cost data relate to the manufacturing activities of Black Company during the just-completed year:

Manufacturing overhead costs:
Property taxes, factory	$            3,900
Utilities, factory	6,350
Indirect labour	11,800
Depreciation, factory	26,250
Insurance, factory	7,800
Total actual manufacturing overhead costs	$           56,100
Other costs incurred:
Purchases of raw materials.	36,500
Direct labour cost	$           46,300
Inventories:
Raw materials, beginning	$            9,800
Raw materials, ending	$            7,900
Work in process, beginning	$            7,350
Work in process, ending	$            9,300

• The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $5 per machine-hour; a total of 12,000 machine-hours were recorded for the year. All raw materials ultimately become direct materials-none are classified as indirect materials.