Exercise $3-7($Static$)$ Applying Overhead; Cost of Goods Manufactured $[$LO$3-3,$ LO$3-4]$

Chang Company provided the following data for this year:

Manufacturing overhead costs incurred:

Indirect materials $,$$$15,000$

Indirect labor $130,000$

Property taxes, factory $8,000$

Utilities, factory $70,000$

Depreciation, factory $240,000$

Insurance, factory $10,000$

Total actual manufacturing overhead costs incurred $$473,000$

Other costs incurred:

Purchases of raw materials $($both direct and indirect$),$$$400,000$

Direct labor cost $,$$$60,000$

Inventories:

Raw materials, beginning

Raw materials, ending

Work in process, beginning

Work in process, ending

$$20,000$

$$30,000$

$$40,000$

$$70,000$

The company uses a predetermined overhead rate of $$25$ per machine$-$hour to apply overhead cost to jobs. A total of $19,400$ machine$-$

hours were used during the year.

Required:

Compute the underapplied or overapplied overhead cost.

Prepare a schedule of cost of goods manufactured.

Complete this question by entering your answers in the tabs below.

Prepare a schedule of cost of goods manufactured.