Question

-Built Problems Help Save & Exit Submit Check my work 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 14,000 16,000 Case 3 10,800 10,500 25,500 30,000 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 10,000 4,400 8,600 49,000 10.800 19,001 4.400 7.2001 5.400 35,000 33.000

Answer 1

	Case 1		Case 2		Case 3
Direct material used	14000		8000	25500-10500-7000	10000
Direct labour	16000		7000	10500/1.5	8000	Refer note
Manufacturing Overhead	24000	16000* 1.5	10500		12000	Refer note
Total Manufacturing Cost	54000	14000+16000+24000	25500		30000
Op WIP	10000		34000	(49000+10500-25500)	7500
Ending WIP	4400		8600		18499	(30000+7500-19001)
Cost of goods manufactured	59600	54000+10000-4400	49000		19001
Op Finished Goods	4400		10000		21399	(35000+5400-19001)
Cl Finished Goods	7200		26000	(49000-33000+10000)	5400
Cost of Goods Sold	56800	59600+4400-7200	33000		35000
Note
For case 3 : Direct labor and manufacturing overhead
Let direct labor be A
Total manufacturing cost = 10000 + A + 1.5A
30000-10000 = 2.5 A
A= 20000/2.5 = 8000
Therefore Direct labor = 8000
Manufacturing overhead = 8000*1.5=	12000