Question

Exercise 15-4 Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. In cate the missing amount for each letter. Assume that in 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.. 15.25 and final answers to o decimal places, e.. 5,275.) Case C Direct materials used (a) $84,200 $72,250 Direct labor 145,200 Manufacturing overhead applied 30,000 Total manufacturing costs 150,350 Work in process 1/1/17 (D) Total cost of work in process 211,800 Work in process 12/31/17 16,600 199,200 230,000 Cost of goods manufactured Click if you would like to show Work for this questioni n Show Work

Answer 1

Cost of goods manufatured in each case :- Particulars Case A Case B Case C Direct materials used (A) 84,200 70,350 72,250 Direct labor (B) 145,200 50,000 90,000 Manufacturing overhead applied ('C) 54,000 30,000 87,120 Total manufacturing cost (A+B+C) = E 150,350 316,520 216,250 Work in process 1/1/17 (D) 18,600 61,450 18,300 Total cost of work in process (D+E)=F 211,800 234,550 335,120 Work in process 12/31/17 (G) 12,600 16,800 4,550 Cost of goods manufatured (F-G) 199,200 318,320 230,000 For case A, Manufacturing overhead applied rate is = Manufacturing overhead/Direct labor Manufacturing overhead applied rate is = (30000/50000) Manufacturing overhead applied rate is = 60% The same above 60% is applied for all other case B and case C For case C:- Assume direct labor cost is =X Then manufacturing overhead applied will be = 0.60*X 72250+X+0.60X=216250 1.60X=216250-72250 1.60X=144000 X is = (144000/1.60) X is = $ 90,000/. So direct labor cost is $ 90,000/. Manufacturing overhead applied will be = 90000*60% = $ 54,000/.