3.00 points E2-6 Finding Unknown Values in the Cost of Goods Manufactured Report
ID: 2332573 • Letter: 3
Question
3.00 points E2-6 Finding Unknown Values in the Cost of Goods Manufactured Report LO 2-3, 2-6] Mulligan Manufacturing Company uses a job order cost system with overhead applied to products at a rete of 150 percent of direct labor cost. Required: Treating each case independenlly, selecled from the manufacluring data given helow, find the missing amounts. You should do them in the order listed. (int For te manufacturing costs in Case 3, fist saive far canversion costs and then delenmine how much of that is direct labor and how much ia maracturing overhesd.) (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar. Enter all amounts as positive values.) Case 1 Case 2 Case 3 Direct material used Direct labor Manufacturing overhead applied Total CuTEnt manufacturing ccats Boginning wark in procass invanbary Ending wrk in pracess inventrry Cost of goods manufachured Beginning finished goods inventory Ending finished goods Inventory 11,000 14.000 13,500 11,000 27,600 27,800 9,200 6,300 B,800 A,400 49,000 11,400 8,001 3,800 8,800 5,100 35,000 of goods sold 39,000Explanation / Answer
Answer
A
Total current manufacturing costs
$ 27,800.00
B
Direct material used
$ 13,500.00
C = A - B
Conversion cost
$ 14,300.00
Conversion cost = Direct labor cost + Manufacturing overhead applied
Let Direct labor cost be 'x', then
Conversion cost = ('x' + 150%x)
x + 150%x = 14300
x + 1.5x = 14300
2.5x = 14300
x = 14300/2.5
x =$ 5,720 = Direct Labor
Manufacturing Overhead applied
5720 x 150%
Manufacturing Overhead applied
$ 8,580.00
---Note: Figures that are to be deducted are within “( )”
---Complete solution
Case 1
Case 2
Case 3
Direct material used
$ 11,000.00
$ 9,167.00
$ 13,500.00
Direct Labor
$ 14,000.00
$ 7,333.00
$ 5,720.00
Manufacturing Overhead applied
$ 21,000.00
$ 11,000.00
$ 8,580.00
Total current manufacturing costs
$ 46,000.00
$ 27,500.00
$ 27,800.00
Beginning WIP Inventory
$ 9,200.00
$ 29,900.00
$ 8,800.00
Ending WIP Inventory
$ (6,000.00)
$ (8,400.00)
$ (28,599.00)
Cost of Goods manufactured
$ 49,200.00
$ 49,000.00
$ 8,001.00
Beginning finished goods inventory
$ 3,900.00
$ 11,400.00
$ 32,099.00
Ending finished goods inventory
$ (8,900.00)
$ (21,400.00)
$ (5,100.00)
Cost of Goods Sold
$ 44,200.00
$ 39,000.00
$ 35,000.00
---Complete working for missing amounts:
Case 1
Case 2
Case 3
Direct material used
11000
=27500-11000-7333
13500
Direct Labor
14000
=11000/150%
5720 [see Working #1 above]
Manufacturing Overhead applied
=14000*150%
11000
=5720*150%
Total current manufacturing costs
=11000+14000+21000
27500
27800
Beginning WIP Inventory
9200
=49000+8400-27500
8800
Ending WIP Inventory
6000
8400
=27800+8800-8001
Cost of Goods manufactured
=46000+9200-6000
49000
8001
Beginning finished goods inventory
3900
11400
=5100+35000-8001
Ending finished goods inventory
8900
=49000+11400-39000
5100
Cost of Goods Sold
=49200+3900-8900
39000
35000
A
Total current manufacturing costs
$ 27,800.00
B
Direct material used
$ 13,500.00
C = A - B
Conversion cost
$ 14,300.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.