Question

 Mulligan Manufacturing Company uses a job order cost system with overhead applied to products at a rate of 150 percent of direct labor cost.

 Required

 Treating each case independently, selected from the manufacturing data given below, Ind the missing amounts. You should do them in the order Isted. (Hint: For the Manufacturing 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 intermediate casualties. Round your final answers to the nearest whole dollar.

 Enter all amounts as positive values)

Answer 1

Solution :

Particulars	Case 1	Case 2	Case 3
Direct materials used	$11,000	$8,833	$14,700
Direct labor	$12,000	$6,667	$6,960
Manufacturing overhead applied	$18,000	$10,000	$10,440
Total current manufacturing costs	$41,000	$25,500	$32,100
Beginning work in process inventory	$8,600	$27,000	$8,200
Ending work in process inventory	$5,800	$8,500	$36,299
Cost of goods manufactured	$43,800	$44,000	$4,001
Beginning finished goods inventory	$3,500	$11,800	$37,399
Ending finished goods inventory	$8,400	$15,800	$6,400
Cost of goods sold	$38,900	$40,000	$35,000