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 16,000 11,000 Case 3 10,500 10,000 26,000 32,100 8,300 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 9,700 4,600 10,000 41,000 11,400 11,001 4,300 8,100 5,200 41,000 41,000

Answer 1

	Case 1	Case 2	Case 3
Direct materials used	16000	9333	10500
Direct labor	11000	6667	8640
Manufacturing overhead applied	16500	10000	12960
Total current manufacturing costs	43500	26000	32100
Beginning work in process inventory	9700	25000	8300
Ending work in process inventory	4600	10000	29399
Cost of goods manufactured	48600	41000	11001
Beginning finished goods inventory	4300	11400	35199
Ending finished goods inventory	8100	11400	5200
Cost of goods sold	44800	41000	41000

Case 1

Manufacturing overhead applied= Direct labor*150%= $11000*150%= $16500

Total current manufacturing costs= Direct materials+Direct labor+Manufacturing overhead applied

= $16000+11000+16500= $43500

Cost of goods manufactured= Total current manufacturing costs+Beginning work in process inventory-Ending work in process inventory

= $43500+9700-4600= $48600

Cost of goods sold= Cost of goods manufactured+Beginning finished goods inventory-Ending finished goods inventory

= $48600+4300-8100= $44800

Case 2

Direct labor= Manufacturing overhead applied/150%= $10000/150%= $6667

Direct materials used= Total current manufacturing costs-Direct labor-Manufacturing overhead applied

= $26000-10000-6667= $9333

Beginning work in process inventory= Cost of goods manufactured+Ending work in process inventory-Total current manufacturing costs

= $41000+10000-26000= $25000

Ending finished goods inventory= Cost of goods manufactured+Beginning finished goods inventory-Cost of goods sold

= $41000+11400-41000= $11400

Case 3

Total conversion cost= Total current manufacturing costs-Direct materials used

= $32100-10500= $21600

Total conversion cost= Direct labor+Manufacturing overhead applied

Let Direct labor= X

Total conversion cost= X+150%*X

$21600= 2.5X

X= $8640

X= Direct labor= $8640

Manufacturing overhead applied= $8640*150%= $

Ending work in process inventory= Total current manufacturing costs+Beginning work in process inventory-Cost of goods manufactured

= $32100+8300-11001= $29399

Beginning finished goods inventory= Cost of goods sold+Ending finished goods inventory-Cost of goods manufactured

= $41000+5200-11001= $35199