Manufacturing cost data for Orlando Company, which uses a job order cost system,
ID: 2607348 • Letter: M
Question
Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below.
Case A
Case B
Case C
Direct materials used
$(a)
$83,000
$63,150
Direct labor
50,000
140,000
(h)
Manufacturing overhead applied
42,500
(d)
(i)
Total manufacturing costs
145,650
(e)
213,000
Work in process 1/1/17
(b)
15,500
18,000
Total cost of work in process
201,500
(f)
(j)
Work in process 12/31/17
(c)
11,800
(k)
Cost of goods manufactured
192,300
(g)
222,000
Instructions
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.
Case A
Case B
Case C
Direct materials used
$(a)
$83,000
$63,150
Direct labor
50,000
140,000
(h)
Manufacturing overhead applied
42,500
(d)
(i)
Total manufacturing costs
145,650
(e)
213,000
Work in process 1/1/17
(b)
15,500
18,000
Total cost of work in process
201,500
(f)
(j)
Work in process 12/31/17
(c)
11,800
(k)
Cost of goods manufactured
192,300
(g)
222,000
Explanation / Answer
Direct material used+Direct labor+Manufacturing overhead=Total manufacturing cost
Total manufacturing cost+Beginning WIP=Total cost of WIP
Total cost of WIP-Ending WIP=Cost of goods manufactured
Predetermined manufacturing overhead rate=($42500/$50000)=85%of direct labor cost
For case C:
Direct labor+manufacturing overhead=(213000-63150)
Direct labor+0.85direct labor=149850
Hence direct labor=149850/1.85
=$81000
Hence manufacturing overhead=(81000*85%)=$68850.
A B C Direct materials used $53150 83000 63150 Direct labor 50000 140,000 81000 Manufacturing overhead applied 42500 $119000 $68850 Total manufacturing cost 145650 $342000 $213000 Work in process 1/1/17 $55850 15500 18000 Total cost of work in pricess 201500 $357500 $231000 Work in process 12/31/17 $9200 11800 $9000 Cost of goods manufactured 192300 $345700 222000Related Questions
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