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 16,000 Case 3 11,400 11,500 28,500 27,300 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 8,500 4,300 8,200 40,000 11,000 14,001 4,200 8,100 5,500 33,000 37,000

Answer 1

Calculate missing amount

	Case 1	Case 2	Case 3
Direct material used	16000	28500-11500-7667 = 9333	11400
Direct labor	16000	11500/1.5 = 7667	15900/2.5 = 6360
Manufacturing overhead applied	16000*1.5 = 24000	11500	6360*1.5 = 9540
Total Current manufacturing cost	16000+16000+24000 = 56000	28500	27300
Beginning work in process inventory	8500	40000+8200-28500 = 19700	7500
Ending work in process inventory	4300	8200	27300+7500-14001 = 20799
Cost of goods manufactured	56000+8500-4300 = 60200	40000	14001
Beginning finished goods inventory	4200	11000	37000+5500-14001 = 28499
Ending finished goods inventory	8100	40000+11000-33000 = 18000	5500
Cost of goods sold	60200+4200-8100 = 56300	33000	37000