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, eg. 15.25 and final answers to 0 decimal places, e.g. 5,275.) Case A Case B Direct materials used $92,500 Direct labor 54.000 143,200 Manufacturing overhead applied 40,500 Total manufacturing costs 152,650 Work in process 1/1/20 (b) 17.500 Total cost of work in process 211,300 Work in process 12/31/20 16,200 Cost of goods manufactured 197.900

Answer 1

Answer

	Case A	Case B
Direct material used	$58,150	$92,500
Direct Labor	$54,000	$143,200
Manufacturing Overhead applied	$40,500	$107,400
Total manufacturing cost	$152,650	$343,100
WIP 1/1/20	$58,650	$17,500
Total cost of WIP	$211,300	$360,600
WIP 12/31/20	$13,400	$16,200
Cost of Goods manufactured	$197,900	$344,400

--Working and calculations

	Case A	Case B
Direct material used	=152650-40500-54000	92500
Direct Labor	54000	143200
Manufacturing Overhead applied	40500 [75% of direct labor: 40500/54000 = 0.75]	=143200 x 75%
Total manufacturing cost	152650	=92500+143200+107400
WIP 1/1/20	=211300-152650	17500
Total cost of WIP	211300	=343100+17500
WIP 12/31/20	=211300-197900	16200
Cost of Goods manufactured	197900	=360600-16200