Manufacturing cost data for Orlando Company, which uses a job order cost system,

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, eg. 15.25 and final answers to O decimal places, e.g. 5,275.) Case A Case B $87,800 Direct materials used Direct labor Manufacturing overhead applied Total manufacturing costs Work in process 1/1/20 Total cost of work in process Work in process 12/31/20 Cost of goods manufactured 52,000 36,400 152,550 145,600 21,400 208,300 12,100 196,100 Attempts: 0 of 4 used Check Answer

Explanation / Answer

a) Calculation of direct materials used: Direct material used=Total manufacturing cost-direct labor-manufacturing overhead                                           = 152550-52000-36400= 64150 Direct material used= 64150 b) Calculation of work in process 1/1/20 Work in process 1/1/20= Total cost of work in process-manufacturing costs                                                = 208300-152550=55750 Work in process 1/1/20= 55750 c) Calculation of work in process 12/31/20: Work in process 12/31/20= Cost of work in process-cost of goods manufactured                                                    = 208300-196100=12200 Work in process 12/31/20= 12200 d) Calculation of manufacturing overhead applied: Manufacturing overhead applied= 145600*36400/52000=101920 Manufacturing overhead applied=101920 e) Calculation of manufacturing costs: Total manufacturing costs= direct material+ direct labor+ manufacturing overhead applied                                                     = 87800+145600+101920=335320 Total manufacturing costs= 335320 f) Calculation of total cost of work in process: Total cost of work in process= work in process 1/1/20 + Total manufacturing costs                                                           = 21400+335320= 356720 Total cost of work in process= 356720 g) Caculation of cost of goods manufactured: Cost of goods manufactured= Total cost of work in process- work in process 12/31/20                                                           = 356720-12100=344620 Cost of goods manufactured= 344620

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