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1 . Taub Company manufactures backpack blowers. The firm had the following inventories. Jan 1 , 2 0 2 4 Dec 3 1 , 2

1. Taub Company manufactures backpack blowers. The firm had the following inventories.
Jan 1,2024 Dec 31,2024
Finished goods $142,000 $ 92,000
Work in process $262,000 $426,000
Materials $114,000 $ 90,000
The following additional data pertains to operations.
Material purchased $150,000 Property Taxes Factory $ 7,500
Direct labor $400,000 Utilities-Factory $15,000
Depreciation-Factory Equip $ 25,000 Insurance-Factory $ 4,500
Factory Supervisor Salaries $227,500 Selling and Admin Expense $200,000
Taub Company applies manufacturing overhead at the rate of 60 percent of direct-
labor cost.



 
Required:
Compute the following amounts for the year of 2024(show work).
a. Create a Statement of Cost of Goods Manufactured in good form.
b. Compute Cost of Goods Sold for 2024.
c. Was overhead under or over applied and by how much?
d. Show the journal entry for (c) assuming the estimate is considered to be
reasonably accurate.
e. Why does overhead need to be applied? Explain.
f. If Taub estimated overhead for the year to be $252,000, what amount was the
original estimate for direct labor cost?

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