Exercise 164 Manufacturing cost data for Orlando Company whi

Exercise 16-4 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. 15.75 and final answers to O decimal places, e.g. 5,275.) Case A Case B Case C Direct materials used $92,000 $64,150 52,000 31,200 146,950 Direct labor 146,900 Manufacturing overhead applied Total manufacturing costs 217,750 Work in process 1/1/17 Total cost of work in process Work in process 12/31/17 Cost of goods manufactured 19,400 19,100 208,900 16,900 193,900 223,200

Solution

Predetermined overhead rate=MAnufacturing overhead applied/Direct labor

=(31200/52000)(as in case A)

=60%direct labor cost

Total manufacturing cost=Direct materials used+Direct labor+Manufacturing overhead applied

Total cost of work in process=Total manufacturing cost+Beginning WIP

Hence cost of goods manufactured=Total cost of work in process-Ending WIP

In case C;direct labor+Manufacturing overhead=(217750-64150)=$153600

Direct labor+0.6Direct labor=153600

Direct labor=153600/(1+0.6)

=$96000

Hence manufacturing overhead=$96000*0.6=$57600

	Case A	Case B	Case C
Direct materials used	63750	92000	64150
Direct labor	52000	146900	96000
Manufacturing overhead applied	31200	$88140	57600
Total manufacturing cost	146950	327040	217750
Work in pricess 1/1/17	61950	19400	19100
Total cost of work in process	208900	346,440	236850
Work in process 12/31/17	15000	16900	13650
Cost of goods manufactured	193900	329540	223200