E2-6 Finding Unknown Values in the Cost of Goods Manufactured Report [LO 2-3, 2-

Question

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 rate of 150 percent of direct labor Required: should do them in the order listed. (Hint For the manufact Treating each case independently, selected from the manufacturing data given below, find the missing amounts. You costs in Case 3, first solve for conversion costs and then determine how much of that is direct labor and how much is manufacturing overhead) (Do not round your calculations. Round your final answers to the nearest whole dollar. Enter all amounts as positive values.) 14,000 13.800 Direct material used Direct labor Manufacturing overhead applied Total current manufacturing costs Beginning work in process inventory Ending work in process inventory Cost of goods manufactured Beginning finished goods inventory Ending finished goods inventory Cost of goods sold 15,000 12,500 28,000 29,100 8,600 4,200 .900 9.200 47,00027,001 11,400 3,900 8,100 5,100 40,000 6,000

Explanation / Answer

1)   

Manufacturing overhead applied = 15000 * 150%

= 22500

i. let direct labour x

29100 = 13800 + x + 1.5x

2.5x = 15300

x = 6120

j. Manufacturing overhead = 6120 * 1.5

= 9180

g. Cost of goods manufactured = Beginning WIP + manufacturing cost - ending WIP

47000 = Beginning WIP +28000 - 9200

Beginning WIP = 28200

k. Cost of goods manufactured = Beginning WIP + manufacturing cost - ending WIP

27001 = 8900 + 29100 -ending inventory

Ending inventory = 10999

h. cost of goods sold = beginning finished goods + cost of goods manufactured - Ending finished goods

40000 = 11400 + 47000 -  Ending finished goods

Ending finished goods = 18400

l.   cost of goods sold = beginning finished goods + cost of goods manufactured - Ending finished goods

36000 = beginning finished goods + 27001 - 5100

beginning finished goods = 14099

Case1 Case2 Case3 a

Manufacturing overhead applied = 15000 * 150%

= 22500

f. Direct material = [28000 -12500 - 8333 ] = 7167

i. let direct labour x

29100 = 13800 + x + 1.5x

2.5x = 15300

x = 6120

b Total manufacturing cost = 14000 + 15000 + 22500 = 51500 e. Direct labour = 12500 / 150 *100 = 8333

j. Manufacturing overhead = 6120 * 1.5

= 9180

c Cost of goods manufactured = 51500 + 8600- 4200 = 55900

g. Cost of goods manufactured = Beginning WIP + manufacturing cost - ending WIP

47000 = Beginning WIP +28000 - 9200

Beginning WIP = 28200

k. Cost of goods manufactured = Beginning WIP + manufacturing cost - ending WIP

27001 = 8900 + 29100 -ending inventory

Ending inventory = 10999

d cost of goods sold = 55900 + 3900 - 8100 = 51700

h. cost of goods sold = beginning finished goods + cost of goods manufactured - Ending finished goods

40000 = 11400 + 47000 -  Ending finished goods

Ending finished goods = 18400

l.   cost of goods sold = beginning finished goods + cost of goods manufactured - Ending finished goods

36000 = beginning finished goods + 27001 - 5100

beginning finished goods = 14099

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