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 2 Case 1 18,000 16,000 Case 3 9,900 10,500 28,500 29,100 7,500 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 8,700 6,000 8,600 49,000 10,900 18,001 4,800 7,300 5,900 38,000 36,000

Answer 1

Calculate missing amount

	Case 1	Case 2	Case 3
Direct material used	18000	28500-10500-7000 = 11000	9900
Direct labor	16000	10500/1.50 = 7000	19200/2.5 = 7680
Manufacturing overhead applied	16000*1.5 = 24000	10500	7680*1.5 = 11520
Total Current manufacturing cost	18000+16000+24000 = 58000	28500	29100
Beginning work in process inventory	8700	49000+8600-28500 = 29100	7500
Ending work in process inventory	6000	8600	29100+7500-18001 = 18599
Cost of goods manufactured	58000+8700-6000 = 60700	49000	18001
Beginning finished goods inventory	4800	10900	38000+5900-18001 = 25899
Ending finished goods inventory	7300	49000+10900-36000 = 23900	5900
Cost of goods sold	60700+4800-7300 = 58200	36000	38000