Cadbury Company uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $144,020 for the year; direct labor was estimated to total $151,600. (1/1) (12/31)
Raw Materials Inventory $ 14,400 $ 9,900
Work in Process Inventory $ 19,300 $ 22,100
Finished Goods Inventory $ 42,400 $ 30,600
The following transactions have occurred during the year.
Raw materials purchases $ 110,000
Direct materials used $ 103,100
Direct labor $ 127,500
Indirect materials used $ 11,400
Indirect labor $ 16,100
Factory equipment depreciation $ 26,600
Factory rent $ 21,300
Factory utilities $ 8,600
Other factory costs $ 7,600
(a) Calculate the predetermined overhead rate
Predetermined Overhead Rate %
(b) Calculate cost of goods manufactured.
Cost of Goods Manufactured
(c) Calculate the over- or underapplied overhead. (Input the amount as positive value.)
(d) Calculate adjusted cost of goods sold
Adjusted Cost of Goods Sold