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Entry (4) in the below T-account could represent the cost of property taxes and insurance incurred on the factory. Manufacturing Overhead—————————————— (2) 4,000| (7) 180,000 (3) 30,000| (4) 80,000| (5) 40,000| (6) 36,000|——————————————190,000|180,000—————————————— Bal. 10,000|
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The $10,000 balance in the T-account below represents overapplied manufacturing overhead for the period.Manufacturing Overhead——————————————(2) 4,000| (7) 180,000(3) 30,000|(4) 80,000|(5) 40,000|(6) 36,000|——————————————190,000|180,000——————————————Bal. 10,000|
In the Schedule of Cost of Goods Manufactured, Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory – Ending work in process inventory.
Assume that a company closes out any manufacturing overhead overapplied or underapplied to cost of goods sold. Then in the Schedule of Cost of Goods Sold, Adjusted cost of goods sold = Unadjusted cost of goods sold + Overapplied overhead – Underapplied overhead.
In the Schedule of Cost of Goods Manufactured, Total raw materials available = Ending raw materials inventory + Purchases of raw materials.
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