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29 October, 07:06

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 Direct materials used $enter a dollar amount (a) $93,400 Direct labor 56,000 146,100 Manufacturing overhead applied 44,800 enter a dollar amount (d) Total manufacturing costs 150,150 enter a dollar amount (e) Work in process 1/1/20 enter a dollar amount (b) 16,800 Total cost of work in process 205,900 enter a dollar amount (f) Work in process 12/31/20 enter a dollar amount (c) 15,400 Cost of goods manufactured 194,300 enter a dollar amount (g)

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  1. 29 October, 09:51
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    Answer and Explanation:

    As per the given question the solution of missing amount for each letter is provided below:-

    Case A Case B

    Direct material used a $49,350 $93,400

    Direct Labor $56,000 $146,100

    Manufacturing overhead

    applied $44,800 d $116,880

    Total manufacturing

    cost $150,150 e $356,380

    Work in process 1/1/20 b $55,750 $16,800

    Total cost of work in

    process $205,900 f $373,180

    Work in process

    12/31/20 c $11,600 $15,400

    Cost of goods

    manufactured $194,300 g $357,780

    Working Note

    a. Direct materials used = Total manufacturing costs - Manufacturing overhead applied - Direct labor

    = $150,150 - ($56,000 + $44,800)

    = $150,150 - $100,800

    = $49,350

    b. Works in process 1/1/20 = Total cost of works in process - Total manufacturing costs

    = $205,900 - $150,150

    = $55,750

    c. Works in process 12/31/20 = Total cost of works in process - Cost of goods manufactured

    = $205,900 - $194,300

    = $11,600

    d. Manufacturing overhead applied = $44,800 : $56,000

    = 80%

    For case B the manufacturing overhead applied = 80% * $146,100

    = $116,880

    e. Total manufacturing costs = Direct materials used + Direct Labor + Manufacturing overhead applied

    = $93,400 + $146,100 + $116,880

    = $356,380

    f. Total cost of work in process = Total manufacturing costs + Works in process 1/1/20

    = $356,380 + $16,800

    = $373,180

    g. Cost of goods manufactured = Total cost of work in process - Works in process 31/12/20

    = $373,180 - $15,400

    = $357,780

    Therefore to reach the missing amounts we simply use the working notes.
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