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, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)

		Case A			Case B			Case C
Direct materials used		$enter a dollar amount	(a)		$91,700			$69,550
Direct labor		56,000			148,500			enter a dollar amount	(h)
Manufacturing overhead applied		44,800			enter a dollar amount	(d)		enter a dollar amount	(i)
Total manufacturing costs		154,650			enter a dollar amount	(e)		218,950
Work in process 1/1/17		enter a dollar amount	(b)		19,200			18,900
Total cost of work in process		204,700			enter a dollar amount	(f)		enter a dollar amount	(j)
Work in process 12/31/17		enter a dollar amount	(c)		13,300			enter a dollar amount	(k)
Cost of goods manufactured		194,800			enter a dollar amount	(g)		231,400

Answer 1

	Case A			Case B			Case C
Direct materials used		53,850	(a)		91,700			69,550
Direct labor		56,000			148,500			83000	(h)
Manufacturing overhead applied		44,800			118800	(d)		66400	(i)
Total manufacturing costs		154,650			359,000	(e)		218,950
Work in process 1/1/17		50,050	(b)		19,200			18,900
Total cost of work in process		204,700			378,200	(f)		237,850	(j)
Work in process 12/31/17		9,900	(c)		13,300			6,450	(k)
Cost of goods manufactured		194,800			364,900	(g)		231,400
Case A
(a) Direct materials used	=	Total manufacturing costs + Direct labor - Manufacturing overhead applied
	=	154650-56000-44800
	=	53850
(b) Work in process 1/1/17	=	Total cost of work in process - Total manufacturing costs
	=	204700 - 154650
	=	50050
( c)Work in process 12/31/17	=	Total cost of work in process - Cost of goods manufactured
	=	204700 - 194800
	=	9900
Case B
Overhead rate	=	Manufacturing overhead applied / Direct labor
	=	44800/56000
	=	0.8
(d) Manufacturing overhead applied	=	Direct labor * Overhead rate
	=	148500 * 0.8
	=	118800
( e)Total manufacturing costs	=	Direct materials used + Direct labor + Manufacturing overhead applied
	=	91700 + 148500 + 118800
	=	359000
(f)Total cost of work in process	=	Total manufacturing costs + Work in process 1/1/17
	=	359000+19200
	=	378200
(g) Cost of goods manufactured	=	Total cost of work in process - Work in process 12/31/17
	=	378200-13300
	=	364900
Case C
Direct labor + Manufacturing overhead applied	=	Total manufacturing costs - Direct materials used
or, Total manufacturing costs - Direct materials used	=	218950 - 69550
	=	149400
(h) Direct labor	=	149400*1/1.8
	=	83000
(i) Direct materials used	=	149400*0.80/1.80
	=	66400
(j) Total cost of work in process	=	Total manufacturing costs + Work in process 1/1/17
	=	218950+18900
	=	237850
(k)Work in process 12/31/17	=	Total cost of work in process - Cost of goods manufactured
	=	237850-231400
	=	6450