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
Direct materials used		$enter a dollar amount	(a)		$90,100
Direct labor		60,000			146,100
Manufacturing overhead applied		39,000			enter a dollar amount	(d)
Total manufacturing costs		154,750			enter a dollar amount	(e)
Work in process 1/1/20		enter a dollar amount	(b)		16,600
Total cost of work in process		207,900			enter a dollar amount	(f)
Work in process 12/31/20		enter a dollar amount	(c)		12,100
Cost of goods manufactured		198,200			enter a dollar amount	(g)

Answer 1

	Case A	Case B
Direct materials used	$ 55,750 ( a )	$ 90,100
Direct labor	60,000	146,100
Manufacturing overhead applied	39,000	94,965 ( d )
Total Manufacturing Costs	154,750	331,165 ( e )
Work in Process, 1/1/20	53,150 ( b )	16,600
Total Cost of Work in Process	207,900	347,765 ( f )
Work in Process, 12/31/20	9,700 ( c )	12,100
Cost of Goods Manufactured	198,200	335,665 ( g )

Predetermined overhead rate = 39,000 / 60,000 = 65% of direct labor cost.

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

Total cost of work in process = Total manufacturing costs + Work in Process, 1/1/20

Cost of goods manufactured = Total cost of work in process - Work in Process, 12/31/20