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 3 Direct material used Case 1 18,000 20,000 15,000 Direct labor Manufacturing overhead applied 11,000 26,000 Total current manufacturing costs 32,400 8,700 Beginning work in process inventory 8,400 5,800 Ending work in process inventory Cost of goods manufactured 8,300 46,000 11,500 20,001 Beginning finished goods inventory 4,400 Ending finished goods inventory 7,500 5,100 Cost of goods sold 41,000 41,000

Answer 1

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

Total current manufacturing costs+Beginning WIP-Ending WIP=Cost of goods manufactured

Cost of goods manufactured+Beginning finished goods inventory-Ending finished goods inventory=Cost of goods sold

For case 3:

15000+Direct labor+1.5*Direct labor=32400

Direct labor*(1+1.5)=32400-15000

Direct labor=17400/2.5

=$6960

Manufacturing overhead=(1.5*6960)=$10440

	Case 1	Case 2	Case 3
Direct materials used	18000	(26000-11000-7333)=$7667(Approx)	15000
Direct labor	20,000	(11000/1.5)=$7333(Approx)	6960
Manufacturing overhead applied	(20,000*1.5)=$30,000	11000	10440
Total current manufacturing costs	(18000+20,000+30,000) =$68000	26000	32400
Beginning WIP	8400	(46000+8300-26000)=$28300	8700
Ending WIP	5800	8300	(32400+8700-20,001)=$21099
Cost of goods manufactured	(68000+8400-5800)=$70600	46000	20,001
Beginning finished goods inventory	4400	11500	(41000+5100-20,001)=$26099
Ending finished goods inventory	7500	(46000+11500-41000)=$16500	5100
Cost of goods sold	(70600+4400-7500)=$67500	41000	41000