Question

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, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)

		Case A			Case B
Direct materials used		$	(a)		$88,000
Direct labor		58,000			150,700
Manufacturing overhead applied		46,400				(d)
Total manufacturing costs		147,950				(e)
Work in process 1/1/20			(b)		18,300
Total cost of work in process		204,800				(f)
Work in process 12/31/20			(c)		13,400
Cost of goods manufactured		193,500				(g)

Answer 1

Direct materials used Direct labor Manufacturing overhead applied Total manufacturing costs Work in process 1/1/20 Total cost of work in process Work in process 12/31/20 Cost of goods manufactured Case A Case B $ 43,550 (a) $ 88,000 S 58.000 $ 150,700 S 46,400 $ 120,560 (d) $ 147,950 $ 359,260 (e) $ 56,850 (6) $ 18,300 $204.800 $ 377,560 (1) $ 11,300 (C) S 13,400 $ 193,500 $364,160 g)

Working Notes: a. Total manufacturing costs = Direct Materials Used + Direct labor + Manufacturing overhead applied $147950 = Direct Materials used + $58,000+$46,400 Direct materials used = $147,950-$58,000-$46,400 = $43,550 b. Total cost of work in process = Total Manufacturing costs + Work in Process 1/1/20 $204,800 = $147,950 + Work in Process 1/1/20 Work in Process 1/1/20 = $204,800-$147,950 = $56,850 c. Cost of goods manufactured = Total Cost of work in process - Work in process 12/31/20 $193,500 = $204.800 - Work in process 12/31/20 Work in process 12/31/20 = $204,800-$193,500 = $11,300 d. Manufacturing overhead applied on the basis of direct labor cost $46400/$58000 = 80% Manufacturing overhead applied = $150.700*80% = $120.560 e. Total manufacturing costs = Direct Materials Used + Direct labor + Manufacturing overhead applied Total manufacturing costs = $88,000+$150,700+$120,560 = $359,260 f. Total cost of work in process = Total Manufacturing costs + Work in Process 1/1/20 = $359,260+$18,300 = $377,560 g. Cost of goods manufactured = Total Cost of work in process - Work in process 12/31/20 = $377,560-$13,400 = $364.160