Accounting Chapter 3 Homework Deduct Underapplied Overhead Overhead Applied Work Process | Course Paper

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DATA INPUT

Superior Metals Corporation

Sales revenue 1,578,750$

Raw-material inventory, 12/31/x3 66,750

Purchases of raw material in 20×4 548,250

Raw-material inventory, 12/31/x4 44,250

Direct-labor cost incurred 355,500

Selling and administrative expenses 201,750

Indirect labor cost incurred 112,500

Property taxes on factory 67,500

Depreciation on factory building 93,750

Income tax expense 18,750

Indirect material used 33,750

Depreciation on factory equipment 45,000

Insurance on factory and equipment 30,000

Utilities for factory 52,500

Work-in-process inventory, 12/31/x3 –

Work-in-process inventory, 12/31/x4 30,000

Finished-goods inventory, 12/31/x3 26,250

Finished-goods inventory, 12/31/x4 30,000

Applied manufacturing overhead 433,125

SOLUTION

1. Cost of goods manufactured for 20×2

2. Schedule of Cost of Goods Sold

Direct material:

Raw material inventory, 12/31/x3 66,750$

Manufacturing overhead:

Indirect material 33,750$

Indirect labor 112,500

Depreciation on factory building 93,750

Add: Work-in-process inventory, 12/31/x3 –

Subtotal 1,359,375$

3. Income Statement

Sales revenue 1,578,750$