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Ecola Company uses a job order costing system. Manufacturing overhead is applied on the basis of...

Ecola 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 $142,560 for the year; direct labor was estimated to total $162,000.

(1/1) (12/31)
Raw Materials Inventory $ 13,800 $ 10,800
Work in Process Inventory $ 29,800 $ 22,800
Finished Goods Inventory $ 41,800 $ 32,800


The following transactions have occurred during the year.

Raw materials purchases $ 138,000
Direct materials used $ 75,600
Direct labor $ 143,000
Indirect materials used $ 16,800
Indirect labor $ 19,800
Factory equipment depreciation $ 28,800
Factory rent $ 15,800
Factory utilities $ 12,300
Other factory costs $ 9,300


(a) Calculate the predetermined overhead rate.



(b) Calculate cost of goods manufactured.




(c) Calculate the over- or underapplied overhead. (Input the amount as positive value.)



(d) Calculate adjusted cost of goods sold.

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ekkarill92 answered 1 year ago
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