Question

Exercise 15-4 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, e.g. 15.25 and final answers to o decimal places, e.g. 5,275.) Case A Case B Case C Direct materials used (a) $93,900 $65,450 Direct labor 52,000 147,700 (h) Manufacturing overhead applied 33,800 (d) (0) 146,650 Total manufacturing costs 217,250 (e) Work in process 1/1/17 (b) 19,500 18,400 203,200 Total cost of work in process S 0) (c) Work in process 12/31/17 16,700 (k) Cost of goods manufactured 194,300 230,700 (9) LINK TO TEXT LINK TO TEXT

Answer 1

Solution

	Case A	Case B	Case C
Direct materials used	$          60,850	$            93,900	$          65,450
Direct labor	$          52,000	$         147,700	$          92,000
Manufacturing overhead applied	$          33,800	$            96,005	$          59,800
Total manufacturing costs	$        146,650	$         337,605	$        217,250
Work in process 1/1/17	$          56,550	$            19,500	$          18,400
Total cost of work in process	$        203,200	$         357,105	$        235,650
Work in process 12/31/17	$             8,900	$            16,700	$            4,950
Cost of goods manufactured	$        194,300	$         340,405	$        230,700

Working

Direct labor cost in Case A	$      52,000.00
Overhead applied in Case A	$      33,800.00
Overhead rate	65%
Overhead to be applied in Case B (147700 x 65%)	$      96,005.00

.

In case C Direct labor and Overhear are (217250-65450)	$   151,800.00
Direct labor and overhead can be said as 165% since overhead is 65% of labor.
Labor cost = (217250/165% x 100%)	$      92,000.00
Overhead cost = (217250/165% x 65%)	$      59,800.00

.

	Case A	Case B	Case C
Direct materials used	=146650-52000-33800	93900	65450
Direct labor	52000	147700	92000
Manufacturing overhead applied	33800	=33800/52000*147700	59800
Total manufacturing costs	146650	=93900+147700+96005	217250
Work in process 1/1/17	=203200-146650	19500	18400
Total cost of work in process	203200	=337605+19500	=217250+18400
Work in process 12/31/17	=203200-194300	16700	=235650-230700
Cost of goods manufactured	194300	=357105-16700	230700