Exercise 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 $87,800 145,600 Case C Direct materials used Direct labor Manufacturing overhead applied Total manufacturing costs Work in process 1/1/17 Total cost of work in process Work in process 12/31/17 Cost of goods manufactured $71,050 52,000 36,400 152,550 224,050 21,400 19,100 208,300 12,100 196,100 227,500

Solution

Overhead application rate = 36400/52000= 70% a Direct materials used = 152550-52000-36400= 64150 b Work in process 1/1/17 = 208300-152550= 55750 c Work in process 12/31/17 = 208300-196100= 12200 d Manufacturing overhead applied = 145600*70%= 101920 e Total manufacturing costs = 87800+145600+101920= 335320 f Total cost of work in process = 335320+21400= 356720 g Cost of goods manufactured = 356720-12100= 344620 h Direct labor = (224050-71050)/170*100= 90000 i Manufacturing overhead applied =90000*70%= 63000 j Total cost of work in process = 224050+19100= 243150 k Work in process 12/31/17 = 243150-227500= 15650