Question

Villanova Corporation is a diversified manufacturer of industrial goods that uses a job-order costing system. The company utilizes a predetermined overhead rate of $30 per machine-hour. Manufacturing overhead cost was applied to production on the basis of 18,000 machine-hours actually worked during 2019. Cost data have been supplied for the manufacturing activities during 2019: Inventories: Raw materials, beginning $10,000 Raw materials, ending $60,000 Work in process, beginning $50,000 Work in process, ending $60,000 Manufacturing overhead costs incurred: Indirect materials $ 10,000 Indirect labor 120,000 Property taxes, factory 8,000 Supervisor’s salary, factory 80,000 Rent, factory 200,000 Heat, water, and power consumed, factory 11,000 Other costs incurred: Purchases of raw materials (both direct and indirect) $500,000 Direct labor cost $70,000

Required: In excel format

1. What is the amount of underapplied or overapplied overhead cost for 2019?

2. Prepare a schedule of cost of goods manufactured for 2019.

Answer 1