26 Hnding Unknown Values in the Cost of Goods Manutactured R

2-6 Hnding Unknown Values in the Cost of Goods Manutactured Report LIC) 2-3, 2-6] Mullgan Manufactunng Company uscs a order cost system wth overnead applied to products at a rate at 150 percent of cirect labar cast Required: Tiealing earl case n e en ent se : et ro n he manufacturing data !ven be ow n the russin amounts u s laud ner l In the der isled n ar nema u a un cos am ase sl so e ar o rive sur cuss ano men deien re how mucna asi 8 trec iabe and ho much is mgnufsciving overneadJ (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar. Enter all amounts as positive values.) 17,000 18.000 13,200 Direct malerial used Direct bb0 Manutactunngvarhaad appled Total curont manufacturing costs Beginning work in process inventany 27,600 7,500 24,000 9.100 5.700 ,000 14,001 Coat of goods manutachared Baginning finishad gocds inwantary Ending frithed goods inventory Cost of gouds sold 7.300 G,S0D 35,000 6,000

Solution

Direct material+Direct labor+Manufacturing overhead applied=Total manufacturing cost

Total manufacturing cost+Beginning WIP-Ending WIP=cost of goods manufactured

cost of goods manufactured+beginning finished goods inventory-ending finished goods inventory=COGS

For case 3:

Direct labor+Overhead=(27600-13200)=$14400

Labor+1.5Overhead=14400

Hence direct labor=14400/2.5

=$5760

	Case 1	Case 2	Case 3
Direct material	17000	4000	13200
Direct labor	18000	8000	5760
Manufacturing overhead	27000	12000	8640
Total maufacturing cost	62000	24000	27600
Beginning WIP	9100	31000	7600
Ending WIP	5700	9000	21199
Cost of goods manufactured	65400	46000	14001
Beginning finished goods inventory	3900	11300	28599
Ending finished goods inventory	7300	21300	6600
COGS	62000	36000	36000