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, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)

Case A Case B Case C
Direct materials used $ (a) $91,200 $69,000
Direct labor 52,200 143,800 (h)
Manufacturing overhead applied 42,804 (d) (i)
Total manufacturing costs 149,800 (e) 216,100
Work in process 1/1/14 (b) 21,300 18,400
Total cost of work in process 208,600 (f) (j)
Work in process 12/31/14 (c) 11,900 (k)
Cost of goods manufactured 193,500 (g) 232,600

Answer 1

(a) $54796 (b) $58,800 (c) $ 15100 (d) $117916 (e) $ 352916 (f) $ 374216

(g) $326316 (h) $ 82824.18 (i) $ 64276.82 (j) $234500 (k) $1900

Step-by-step explanation:

The calculations are as follows.

Case A Case B Case C

Direct materials used $ (a) 54796 $91,200 $69,000

Direct labor 52,200 143,800 (h) 82824.18

Manufacturing overhead applied 42,804 (d)117916 (i)64276.82

Total manufacturing costs 149,800 (e) 352916 216,100

Working

The following formula is used to find the missing values :

Total MFG Cost= DM + DL+ MFG OH

a) 149800- 42804-52200= 54796

d) Ratio of MfgOH to DL= 42,804/52,200= 0.82

Mfg Overhead for Case 2= 0.82* 143,800= 117916

e) 91,200+ 143,800+ 117916= 352916

h+i) Conversion Costs for Case 3= 216100-69000=147100

Mfg OH is 82% of DL

Total Conversion Cost will be 1.82

1.82x= 147100

x= 147100/1.82

x= 82,824.18

h)DL= 82824.18

i) MFG OH= CC- DL= 147100- 82824.18= 64276.82

Work in process 1/1/14 (b) 58,800 21,300 18,400

Total cost of work in process 208,600 (f) 374216 (j)234500

Working

The following formula is used to find the missing values

Total WIP Cost- Total MFG Cost= Opening WIP

b)Total WIP Cost- Total MFG Cost= 208600-149800= 58,800

f) Total MFG Cost+ WIP= 352916 + 21,300 =374216

j) Total MFG Cost+ WIP=216,100 + 18,400= 234500

Work in process 12/31/14 (c) 15100 11,900 (k)1900

Cost of goods manufactured 193,500 (g) 326316 232,600

Working

The following formula is used to find the missing values

Total WIP-CGS= Ending WIP

c) Total WIP-CGS= 208600-193500 = 15100

g) Total WIP- Ending WIP= 374216- 11,900 = 326316

k) Total WIP-CGS=234500- 232,600 = 1900

After filling in the blanks:

Case A Case B Case C

Direct materials used $ (a) 54796 $91,200 $69,000

Direct labor 52,200 143,800 (h) 82824.18

Manufacturing overhead applied 42,804 (d)117916 (i)64276.82

Total manufacturing costs 149,800 (e) 352916 216,100

Work in process 1/1/14 (b) 58,800 21,300 18,400

Total cost of work in process 208,600 (f) 374216 (j)234500

Work in process 12/31/14 (c) 15100 11,900 (k)1900

Cost of goods manufactured 193,500 (g) 326316 232,600