Homework SourseExercise 154 Manufacturing cost data for Orlando Company whi
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 0 decimal places, e.g. 5,275.)
Case A
Case B
Case C
| Case A | Case B | Case C | |||||||
| Direct materials used | $
| (a) | $93,400 | $65,150 | |||||
| Direct labor | 56,000 | 146,100 |
| (h) | |||||
| Manufacturing overhead applied | 44,800 |
| (d) |
| (i) | ||||
| Total manufacturing costs | 150,150 |
| (e) | 212,750 | |||||
| Work in process 1/1/17 |
| (b) | 16,800 | 18,800 | |||||
| Total cost of work in process | 205,900 |
| (f) |
| (j) | ||||
| Work in process 12/31/17 |
| (c) | 15,400 |
| (k) | ||||
| Cost of goods manufactured | 194,300 |
| (g) | 223,900 |
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Solution
Predetermined overhead rate=($44800/$56000)=80%*Direct labor cost
Direct material+Direct labor+Manufacturing overhead=Total manufacturing cost
Total manufacturing cost+Beginning WIP=Total cost of work in process
Total cost of work in process-Ending WIP=Cost of goods manufactured
Hence in case C:
Direct labor+Manufacturing overhead=(212750-65150)=$147600
Direct labor+0.8Direct labor=147600
Hence Direct labor=147600/1.8
=$82000
Hence manufacturing overhead=(82000*0.8)=$65600
| Case A | Case B | Case C | |
| Direct materials used | $49350 | 93400 | 65150 |
| Direct labor | 56000 | 146100 | 82000 |
| Manufacturing overhead applied | 44800 | (146100*0.8)=$116880 | $65600 |
| Total manufacturing costs | 150150 | $356380 | 212750 |
| Work in process 1/1/17 | $55750 | 16800 | 18800 |
| Total cost of work in process | 205900 | $373180 | $231550 |
| Work in process 12/31/17 | $11600 | 15400 | $7650 |
| Cost of goods manufactured | 194300 | $357780 | 223900 |
