The following costs are attributed to the Quilt Company: Purchase of raw materials (all direct) $287,300 Direct
Question:
The following costs are attributed to the Quilt Company:
Purchase of raw materials (all direct) $287,300
Direct labor cost $129,800
Manufacturing overhead costs $166,260
Inventories:
Beginning raw materials $10,000
Ending raw materials $2,000
Beginning work in process $20,000
Ending work in process $2,800
Beginning finished goods $20,000
Ending finished goods $2,700
Quilt Company used a 125% predetermined overhead rate based on direct labor cost.
Required:
1). Calculate the cost of goods manufactured.
2). What was the cost of goods sold before adjusting for any under or over applied overhead?
3). By how much was manufacturing overhead cost under or over applied?
4). Would the summary journal entry to close any under or over applied manufacturing overhead cost be a debit or credit to COGS?
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher