Question

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

Manufacturing overhead costs incurred:
Indirect materials	$	15,400
Indirect labor		134,000
Property taxes, factory		8,400
Utilities, factory		74,000
Depreciation, factory		191,200
Insurance, factory		10,400
Total actual manufacturing overhead costs incurred	$	433,400
Other costs incurred:
Purchases of raw materials (both direct and indirect)	$	404,000
Direct labor cost	$	64,000
Inventories:
Raw materials, beginning	$	20,400
Raw materials, ending	$	30,400
Work in process, beginning	$	40,400
Work in process, ending	$	70,400

The company uses a predetermined overhead rate of $22 per machine-hour to apply overhead cost to jobs. A total of 20,100 machine-hours were used during the year.

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

Answer 1

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

Direct material used
Beginning raw material	20400
Raw material purchase	404000
Raw material available for use	424400
Less; Ending raw material	-30400
Raw material used in production	394000
Less; Indirect material	-15400
Direct material used		378600
Direct labour		64000
Manufacturing overhead (22*20100)		442200
Total manufacturing cost		884800
Beginning work in process		40400
Total Cost of work in process		925200
Less; Ending work in process		-70400
Cost of goods manufactured		854800