Question

Manufacturing cost data for Oriole 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 $ 40950 (a) $91,900 $63,150 58,000 142,300 (h) 49,300 (d) (i) 148,250 (e) 213,000 Direct labor Manufacturing overhead applied Total manufacturing costs Work in process 1/1/20 Total cost of work in process Work in process 12/31/20 Cost of goods manufactured 55950 (b) 16,500 18,300 204,200 (f) (i) 9100 (c) 15,700 (k) 195,100 1 229,100

Answer 1

Case A

Manufacturing overhead applied = Direct labor cost x Predetermined overhead rate

49,300 = 58,000 x Predetermined overhead rate

Predetermined overhead rate = 85% of direct labor cost

Case B

Manufacturing overhead applied = Direct labor cost x 85%

= 142,300 x 85%

= $120,955

Total manufacturing cost = Direct materials used + Direct labor + Manufacturing overhead applied

= 91,900+142,300+120,955

= $355,155

Total cost of work in process = Total manufacturing cost+ Work in process 1/1/20

= 355,155+16,500

= $371,655

Cost of goods manufactured = Total cost of work in process - Work in process 12/31/20

= 371,655-15,700

= $355,955

Case C

Let the direct labor cost be $K

Manufacturing overhead applied = Direct labor cost x Predetermined overhead rate

= K x 85%

= 0.85K

Direct materials+ Direct labor + Overhead applied = Total manufacturing cost

63,150+K+0.85K = 213,000

1.85K = 213,000-63,150

1.85K= 149,850

K = $81,000

Direct labor cost = $81,000

Total manufacturing cost = Direct materials used + Direct labor + Manufacturing overhead applied

213,000 = 63,150+81,000+Manufacturing overhead applied

Manufacturing overhead applied = $68,850

Total cost of work in process = Total manufacturing cost+ Work in process 1/1/20

= 213,000+18,300

= $231,300

Cost of goods manufactured = Total cost of work in process - Work in process 12/31/20

229,100 = 231,300-Work in process 12/31/20

Work in process 12/31/20 = $2,200

	Case A	Case B	Case C
Direct materials used	40,950	91,900	63,150
Direct labor	58,000	142,300	81,000
Manufacturing overhead applied	49,300	120,955	68,850
Total manufacturing cost	148,250	355,155	213,000
Work in process 1/1/20	55,950	16,500	18,300
Total cost of worn in process	204,200	371,655	231,300
Work in process 12/31/20	9,100	15,700	2,200
Cost of goods manufactured	195,100	355,955	229,100

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