ES Exercise 20-4 Manufactuning cost data for Orlando Company, which uses a job o
ID: 2406182 • Letter: E
Question
ES Exercise 20-4 Manufactuning 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 overheac 2 decimal places, e.g. 15.75 and final answers to O decimal places, g. 5,275.) Case A Case B Case C Direct materials used $74,150 Direct labor Manufacturing overhead applied Total manufacturing costs Work in process 1/1/17 Total cost of work in process Work in process 12/31/17 Cost of goods manufactured Click if you would like to Show Work for this question: 2,850 (e)$92,100 58,000 37,700 143,550 59,650 (b)19,000 208,200 10,500 (c) 197,700 150,900 Ch) C0) () 221,000 18,200 0) 16,800 (a) 228,000 ORen Show Work SUBMET Question Attempts: 0 of 3 used SAV FOR LATERExplanation / Answer
d) Rate of Manufacturing OH of Direct labor in case A = Manufacturing OH Applied/Direct labor
= $37,700/$58,000 = 65%
Manufacturing Overhead applied in Case B = Direct labor in case B*65%
= $150,900*65% = $98,085
e) Total manufacturing costs in Case B = Direct materials+Direct labor+Manufacturing OH
= $92,100+$150,900+$98,085 = $341,085
f) Total cost of work in process in Case B = Total manufacturing costs+Work in process 1/1/17
= $341,085+$19,000 = $360,085
g) Cost of goods manufactured in Case B = Total cost of WIP - Work in process 12/31/17
= $360,085 - $16,800 = $343,285
h) Let direct labor in case C is X. Thus manufacturing OH applied in case C will be 0.65X.
Total Manufacturing costs in Case C = Direct materials+Direct labor+Manufacturing OH applied
$221,000 = $74,150+X+0.65X
$221,000 = $74,150+1.65X
$221,000 - $74,150 = 1.65X
$146,850 = 1.65X
X = $146,850/1.65 = $89,000
i) Manufacturing OH applied in Case C = Direct labor*65%
= $89,000*65% = $57,850
j) Total cost of work in process in Case C = Total manufacturing costs+Work in process 1/1/17
= $221,000+$18,200 = $239,200
k) Work in process 12/31/17 = Total cost of work in process - Cost of goods manufactured
= $239,200 - $228,000 = $11,200
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