Problem - The following inventory and cost data for the just completed year are taken from the accounting records of Shankar Company:
Inventories
• Increase in raw materials $4,000
• Increase in work in process 30,000
• Decrease in finished goods 90,000
Cost Incurred
• Advertising expense $200,000
• Direct Labour Cost 180,000
• Purchase of raw materials 264,000
• Rent, factory building 60,000
• Indirect factory labour 112,600
• Sales Commissions 70,000
• Utility, factory 18,000
• Maintenance, factory equipment 48,000
• Supplies, factory 1,400
• Depreciation, office equipment 16,000
• Depreciation, factory equipment 80,000
Calculate the cost of goods manufactured?
Which items in the cost incurred should be included in the manufactured overhead?