Question

Current Attempt in Progress 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. (Round overhead rate to 2 decimal places, es. 15.25 and final answers to decimal places, es. 5.275) Case A Case B Direct materials used (a) $93,600 Direct labor 54,000 146,500 Manufacturing overhead applied Total manufacturing costs 32,400 155,550 (b) 205,300 Work in process 1/1/20 23,900 Total cost of work in process Work in process 12/31/20 16.600 Cost of goods manufactured 198,000 e Textbook and Media Attempts: 0 of 3 used Send to Gradebook

Answer 1

297 answers

	Case A		Case B
Direct materials used	$ 69,150	(a)	$93,600
Direct labor	54,000		146,500
Manufacturing overhead applied	32,400		87,900	(d)
Total manufacturing costs	155,550		328,000	(e)
Work in process 1/1/20	49,750	(b)	23,900
Total cost of work in process	205,300		351,900	(f)
Work in process 12/31/20	7,300	(c)	16,600
Cost of goods manufactured	198,000		$335,300	(g)

(a) Direct materials used    = Total manufacturing costs - Direct labor - Manufacturing overhead applied
                                               = 155550- 54000-32400 = $69150
b)

Total cost of work in process = Total manufacturing costs + Work in process 1/1/20                        

Work in process 1/1/20      = Total cost of work in process - Total manufacturing costs
                                                 = $ 205,300 - 155,550 = 49,750

(c)

Cost of goods manufactured = Total cost of work in process - Work in process 12/31/20
Work in process 12/31/20 = Total cost of work in process - Cost of goods manufactured
                                                = 205,300 -198,000 = 7,300

(d) Predetermined Overhead Rate in case 1 = Manufacturing Overhead Applied/ Direct Labor
                                                               = $ 32,400/54,000 = 60%

as in all cases Manufacturing overhead is applied on basis of direct labor hour

Manufacturing overhead applied in case 2 = Predetermined Overhead Rate x direct Labor Hour
                                                                             = 60% x 146,500 = $87,900

(e) Total manufacturing costs in case 2 = Direct materials used + Direct labor + Manufacturing overhead applied
                                                                          = $93600 + 146,500 + 87900 = $328,000

(f) Total cost of work in process (case 2)= Total manufacturing costs + Work in process 1/1/20    
                                                                           = 328,000 + 23,900 = $ 351,900

(g) Cost of goods manufactured (case 2) = Total cost of work in process - Work in process 12/31/20
                                                                       = $ 351,900 - 16,600 = $335300