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 O decimal places, e.g. 5,275.) Case A Case B Direct materials used $ 69150 (a) $84,200 Direct labor 50,000 145,200 Manufacturing overhead applied 30,000 Total manufacturing costs 150,350 Work in process 1/1/20 (b) 18,600 Total cost of work in process 211,800 Work in process 12/31/20 16,800 Cost of goods manufactured 199,200

Answer 1

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

Total manufacturing costs+Beginning WIP=Total cost of work in process

Total cost of work in process-Ending WIP=Cost of goods manufactured

Predetermined overhead rate=Manufacturing overhead applied/Direct labor cost

=(30,000/50,000)=0.6*Direct labor cost

	Case A	Case B
Direct materials used	(150350-50,000-30,000)=$70350	84200
Direct labor	50,000	145200
Manufacturing overhead applied	30,000	(145200*0.6)=$87120
Total manufacturing costs	150350	(84200+145200+87120)=$316520
WIP 1/1/20	(211800-150350)=$61450	18600
Total cost of work in process	211800	(316520+18600)=$335120
WIP 12/31/20	(211800-199200)=$12600	16800
Cost of goods manufactured	199200	(335120-16800)=$318320