Question

Mulligan Manufacturing Company uses a job order cost system with overhead applied to products at a rate of 150 percent of direct labor cost. Required: Treating each case independently, selected from the manufacturing data given below, find the missing amounts. You should do them in the order listed. (Hint: For the manufacturing costs in Case 3, first solve for conversion costs and then determine how much of that is direct labor and how much is manufacturing overhead.) (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar. Enter all amounts as positive values.)

Case 1 Case 2 Case 3 10,500 Direct material used Direct labor Manufacturing overhead applied Total current manufacturing costs Beginning work in process inventory Ending work in process inventory Cost of goods manufactured Beginning finished goods inventory Ending finished goods inventory Cost of goods sold 18,000 18,000 13,000 27,500 31,800 7,500 8,500 9,600 50,000 11,200 4,400 12,001 3,600 7,500 6,700 41,000 35,000

Answer 1

Calculate following

	Case 1	Case 2	Case 3
Direct material used	18000	5833	10500
Direct labor	18000	13000/1.5 = 8667	8520
Manufacturing overhead applied	18000*150% = 27000	13000	21300*1.5/2.5 = 12780
Total Current manufacturing cost	63000	27500	31800
Beginning work in process inventory	8500	32100	7500
Ending work in process inventory	4400	9600	27299
Cost of goods manufactured	67100	50000	12001
Beginning finished goods inventory	3600	11200	35699
Ending finished goods inventory	7500	26200	6700
Cost of goods sold	63200	35000	41000