## Answers

1) Cost of raw material used = 17000+124000-27000 = 114000

2) Indirect material = 114000-92000 = 22000

3) Indirect labor = 184000-156000 = 28000

4) Cost of goods manufactured = 476000

5) Unadjusted cost of goods sold = 42000+476000-63000 = 455000

6) Overhead rate = 241800/156000 = 155% of labor cost

7) Applied overhead = 241800

Actual overhead = 229800

Over applied overhead = 241800-229800 = 12000

8) Ending WIP = 35800

Applied overhead = 8500*1.55 = 13175

Direct material = 35800-8500-13175 = 14125

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