Response to the following problem:
Chang Company Schedule of
Cost of Goods Manufactured Direct materials:
Raw materials inventory, beginning $21,000
Add: Purchases of raw materials 410,000
Raw materials available for use 431,000
Less: Raw materials inventory, ending 31,000
Raw materials used in production 400,000
Less: Indirect materials 16,000 $384,000
Direct labor 70,000
Manufacturing overhead cost applied to work in process
Total manufacturing costs 454,000
Add: Work in process inventory, beginning 41,000 495,000
Less: Work in process inventory, ending 71,000
Cost of goods manufactured $424,000
How to find manufacturing overhead cost applied to work in process ?