Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below....

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Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below....

Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below.

Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same.

	Case A		Case B		Case C
Direct materials used	$	(a)	$83,000		$63,150
Direct labor	50,000		140,000			(h)
Manufacturing overhead applied	42,500			(d)		(i)
Total manufacturing costs	145,650			(e)	213,000
Work in process 1/1/14		(b)	15,500		18,000
Total cost of work in process	201,500			(f)		(j)
Work in process 12/31/14		(c)	11,800			(k)
Cost of goods manufactured	192,300			(g)	222,000

I was able to get some of the answers correct could you help verify mine and help me out with the others Thank you.

Determine the value of z-factor for the gas given below at 3819 psig and 526.54 degree F:

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Answer 1

Answer #1

Concepts and reason

Production: Production is a process or an activity that converts raw materials into finished goods. Raw materials started during the production may be processed in the same year or next year. Raw materials that are processed partially are known as work-in-process. Output of the production activity is termed as finished goods.

Direct labor cost: Direct labor cost is the cost of labor used in production. It is one of the prime costs. Cost of labor implies wages paid to them for the services rendered by them in the production process. It is a variable cost. It implies direct labor cost will change according to the change in volume of production.

Manufacturing overhead: Manufacturing overhead is the indirect expense incurred in addition to the direct expenses during the production activity. Manufacturing overhead is also known as factory overhead. This cost is not directly traceable for a particular product. These are allocated to the product basing on the predetermined overhead rate.

Manufacturing overhead is divided into variable manufacturing overhead and fixed manufacturing overhead. Variable manufacturing overhead is the overhead cost that changes with the volume of production. Fixed manufacturing overhead is the overhead cost that does not change with the volume of production.

Job-order costing: Job-order costing system is used to collect and assign manufacturing costs to the units manufactured individually or to a particular job. This costing system is used in a company which produces products that are different from each other. It implies this costing is helpful when the produces products those are not identical to one another.

Fundamentals

Direct materials cost: Direct materials cost is the cost of raw materials used in production. It is one of the prime costs. These raw materials are the inputs for a production process to convert them into output. It is a variable cost. It implies direct materials cost will change according to the change in volume of production.

Predetermined overhead rate: Predetermined overhead rate is used to apply manufacturing overhead to work in process inventory. Usually this predetermined overhead rate will be calculated at the beginning of the period. This rate is used to charge overhead costs to a particular job. It is calculated by dividing the estimated total overhead cost with the estimated allocation base. Estimated allocation base may be labor hours or machine hours or direct labor as per the policy adapted by a company.

Estimated total overhead cost
Predetermined overhead rate = 5
Estimated allocation base

Total manufacturing costs: Total manufacturing costs are the costs incurred to manufacture a particular product. Total manufacturing costs will include direct materials cost, direct labor cost and manufacturing overhead applied.

Total manufacturing costs =
Direct
(Manufacturing
+ (Direct labor) +
materials used)
overhead applied

a.

Calculate the amount of direct materials used in the Case A as shown below:

Direct
Manufacturing
Total manufacturing costs =
+ (Direct labor) + |
materials used
overhead applied)
Total
Manufacturing
Di

Thus, the amount of direct materials used in the Case A is $53, 150 .

b.

Work-in-process: Work-in-process is the inventory existing at the end of a particular period which is not processed completely. These are processed in the next period to convert them into finished goods. Work-in-process is reported as a part of the current assets section in the balance sheet after the raw materials.

Calculate the work in process as on 1/1/14 in the Case A as shown below:

Total cost of work in process = Total manufacturing costs + Work in process on 1/1/14
Work in process on 1/1/14 = Total cost

Thus, the amount of work in process on 1/1/14 in the Case A is $55, 850 .

c.

Calculate the work in process as on 12/31/14 in the Case A as shown below:

Cost of goods manufactured = Total cost of work in process - Work in process on 12/31/14
Work in process on 12/31/14 = Total

Thus, the work in process as on 12/31/14 in the Case A is $9,200 .

Calculate the predetermined overhead rate as shown below:

Manufacturing overhead applied in Case A
Predetermined overhead rate =
Direct labor cost in Case A
$42,500
$50,000
= 85%

Thus, the predetermined overhead rate is.

d.

Calculate the amount of manufacturing applied in Case B as shown below:

Manufacturing overhead applied = Direct labor cost Predetermined overhead rate
= $140,000 x 85%
= $119,000

Thus, the amount of manufacturing overhead applied in Case B is $119,000 .

e.

Calculate the amount of total manufacturing costs in Case B as shown below:

Amount
$83,000
$140,000
Details
Direct materials
Add: Direct labor cost
Add: Manufacturing overhead applied
[$140,000 85%]
To

Thus, the amount of total manufacturing costs in Case B is $342,000 .

f.

Calculate the total cost of work in process in Case B as shown below:

Total cost of work in process = Total manufacturing costs + Work in process 1/1/14
= $342,000+ $15,500
= $357,500

Thus, the total cost of work in process in Case B is $357,500 .

g.

Calculate the cost of goods manufactured in Case B as shown below:

Cost of goods manufactured = Total cost of work in process - Work in process 12/31/14
= $357,500 - $11,800
= $345,700

Thus, the cost of goods manufactured in Case B is $345, 700 .

h.

Calculate the amount of direct labor in Case C as shown below:

Manufacturing costs = Direct materials + Direct labor + Manufacturing overhead applied
$213,000 = $63,150 + Direct labor+ (Di

$149,850 = 185% ~ Direct labor
$149,850
Direct labor =
185%
= $81,000

Thus, the amount of direct labor in Case C is $\$81,000$ .

i.

Calculate the amount of manufacturing overhead applied in Case C as shown below:

Manufacturing overhead applied = Direct labor cost Predetermined overhead rate
= $81,000 x 85%
= $68,850

Thus, the amount of manufacturing overhead applied in Case C is $68,850 .

j.

Calculate the total cost of work in process in Case C as shown below:

Total cost of work in process = Total manufacturing costs + Work in process 1/1/14
= $213,000+ $18,000
= $231,000

Thus, the total cost of work in process in Case C is $231,000 .

k.

Calculate the work in process as on 12/31/14 in the Case C as shown below:

Cost of goods manufactured = Total cost of work in process - Work in process on 12/31/14
Work in process on 12/31/14 = Total

Thus, the work in process as on 12/31/14 in the Case C is $9,000 .

Ans: Part a

The amount of direct materials used in the Case A is $53,150.

Part b

The amount of work in process on 1/1/14 in the Case A is $55,850.

Part c

The amount of work in process on 12/31/14 in the Case A is $9,200.

The predetermined overhead rate is 85%.

Part d

The amount of manufacturing overhead applied in Case B is $119,000.

Part e

The amount of total manufacturing costs in Case B is $342,000.

Part f

The total cost of work in process in Case B is $357,500.

Part g

The cost of goods manufactured in Case B is $345,700.

Part h

The amount of direct labor in Case C is $81,000.

Part i

The amount of manufacturing overhead applied in Case C is $68,850.

Part j

The total cost of work in process in Case C is $231,000.

Part k

The amount of work in process on 12/31/14 in the Case C is $9,000.

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