EXERCISE 3-6Applying overhead Cost of Good Manufactured

Q.1 Compute the amount of under or overapplied overhead cost for

the year.

Overhead applied to Predetermined Amount of the

allocation
a particular job = overhead rate X base incurred by the job.

= $25 x 19,400
= $485,000

Actual cost = $473,000

Underapplied = $12000

Q.2 Prepare the schedule of cost of goods manufactured for the year.

Raw Material, beginning $20,000

( + ) Purchase of Raw Material $400,000
Total Raw Material available $420,000
( - ) Raw Material, ending $30,000
Raw Material used in production $390,000
Indirect Material $15,000 $375,000

Direct Labor
$60,000
Total Manufacturing Overhead
$435,000
Work in Process, beginning
$40,000

$475,000
( - ) Work in Process, ending $70,000
Cost of Good Manufactured $405,000

Disediakan Oleh;

Ahli Kumpulan:
Mohd Ismail Bin Mat Daud
Mohd Shafiq Bin Shukor
Azuan Bin Amran
Wan Mohd Khairul bin Wan Md Ghazali