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Find: 1. Total Manufacturing Cost during the current year 2. Cost of goods Manufactured during the current year 3. Over or Under applied Overhead

Find: 1. Total Manufacturing Cost during the current year 2. Cost of goods Manufactured during the current year 3. Over or Under applied Overhead

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter1: Introduction To Cost Accounting
Section: Chapter Questions
Problem 9P: Glasson Manufacturing Co. produces only one product. You have obtained the following information...
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Find:

1. Total Manufacturing Cost during the current year
2. Cost of goods Manufactured during the current year

3. Over or Under applied Overhead

Marawi Company employs normal costing for its production. The following data are provided during the current year: Net purchases of raw materials during the year Total labor costs during the year Depreciation of factory assets during the year Utilities on the factory during the year 500,000 800,000 100,000 300,000 Beginning 200,000 500,000 600,000 Ending Raw materials Work in process inventory Finished goods inventory 300,000 200,000 300,000 • The entity uses a single account for its direct material and indirect materials. Indirect material used is one-fourth of the total material used. The indirect labor cost is 1/8 of the total labor costs. The overhead application rate is 80% of direct labor costs. Any over or under application of overhead is considered material.
Transcribed Image Text:Marawi Company employs normal costing for its production. The following data are provided during the current year: Net purchases of raw materials during the year Total labor costs during the year Depreciation of factory assets during the year Utilities on the factory during the year 500,000 800,000 100,000 300,000 Beginning 200,000 500,000 600,000 Ending Raw materials Work in process inventory Finished goods inventory 300,000 200,000 300,000 • The entity uses a single account for its direct material and indirect materials. Indirect material used is one-fourth of the total material used. The indirect labor cost is 1/8 of the total labor costs. The overhead application rate is 80% of direct labor costs. Any over or under application of overhead is considered material.
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