Question

Manufacturing cost data for Waterway 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 0 decimal places, e.g. 5,275.) Case A Case B Case C (a) $86,600 $64,150 56,000 147,500 (h) 44,800 (d) (i) 152,250 (e) 214,000 Direct materials used Direct labor Manufacturing overhead applied Total manufacturing costs Work in process 1/1/20 Total cost of work in process Work in process 12/31/20 Cost of goods manufactured (b) 24,800 18,400 210,800 (f) (i) (c) 13,600 (k) 193,600 (g) 223,400

Answer 1

Ausr $86, 600 Case Cose B Case C С Direct materials used $51,450 $ 64,150 Direct labor $ 56,000 $147,500 $83,250 minufacturing overhead applied $44,8 00 $118,000 $66,600 Total manufacturing Costs $ 158,250 $352,100 $914,000 Work in process 111120 $58,550 $4,800 $18,uct Total cost of work in process $210,800 $376,900 $239,400 work in process 12/31/20 $14,200 $13,600 $ 9000 Cost of Goods manufactured $193,600 4363,300 $223.400

Working:-

a. Direct materials used = $152,250 - $44,800 - $56,000 = $51,450

b. Work in process 1/1/20 = $210,800 - $152,250 = $58,550

c. Work in process 12/31/20 = $210,800 - $193,600 = $17,200

d. Manufacturing Overhead applied = $44,800/$56,000*$147,500 = $118,000

e. Total manufacturing overhead = $86,600+$147,500+$118,000 = $352,100

f. Total cost of work in process = $352,100 + $24,800 = $376,900

g. Cost of goods manufactured = $376,900 - $13,600 = $363,300

h. Direct labor = ($214,000 - $64,150)/180% =$83,250

i. Manufacturing Overhead applied = $214,000 - $64,150 - $83,250 = $66,600

j. Total cost of work in process = $214,000 + $18,400 = $232,400

k. Work in process 12/31/20 = $232,400 - $223,400 = $9,000

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