Reference no: EM132536616

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?