Cost of goods manufactured

Assignment Help Accounting Basics

Reference no: EM131124924

EXERCISE 3-13 Applying Overhead; Cost of Goods Manufactured [LO2, LO6, LO7]

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

Property taxes, factory . . . . . . . . . . . . . . . . . . . . . . . . . . .	$3,000
Utilities, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5,000
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	10,000
Depreciation, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	24,000
Insurance, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	6,000
Total actual manufacturing overhead costs . . . . . . . . . . . .	$48,000

The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 10,000 machine-hours was recorded for the year. All raw materials ultimately become direct materials-none are classified as indirect materials.

Required:

1. Compute the amount of underapplied or overapplied overhead cost for the year.

2. Prepare a schedule of cost of goods manufactured for the year.

Reference no: EM131124924

Questions Cloud

Doughnuts directly conflicted with his goal : Research Problem 2. Your client, John Butler, is an avid Houston Astros fan. Last March at the Astros' home opener, as a result of a random drawing of those in attend- ance at the game, John won 300 Shipley Do-Nut coupons. Each coupon entitled him..

Have you seen it used in the human services field : Select one theory that you have personally experienced in your career or that you find particularly interesting in its approach. Have you seen it used in the Human Services field or in another field? Was it effective or ineffective? Why does it ho..

Construct a model in the spirit of kinked demand : Construct a model in the spirit of kinked demand for the setting of an N firm oligopoly.

What percentage of the time is the cashier busy : Beate Klingenberg manages a Poughkeepsie, New York, movie theater complex called Cinema 8. Each of the eight auditoriums plays a different film; the schedule staggers starting times to avoid the large crowds that would occur if all 8 movies started a..

Cost of goods manufactured : The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 10,000 machine-hours was recorded for the year. All raw materials ultimately become direct materials-none are ..

Why did some quality initiatives fail : Discuss personal experience in regard to quality improvement programs. If you have no experience, you should gain some from friends or work colleagues or-as a last resort-news articles.

What is the gain for u.s. producers : If the United States imposes a tariff of $3 per pound, what will be the U.S. price and level of imports? How much revenue will the government earn from the tariff? How large is the deadweight loss?

The fixed cost per week of running the stand : Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand is $50.00. Her best guess is that she can sell 300 cups per week at $0.50 per cup. The variable cost of producing a cup of lemonade is $0.20.

Why must firms adopt the identified roles : In general, identify senior management's specific role in these large-scale strategic quality programs? Cheerleader? Role model? Decision maker? Resource provider? What else?

User Account

All Pages