Manufacturing cost data for Bramble Company, which uses a job order cost system,
ID: 2434998 • Letter: M
Question
Manufacturing cost data for Bramble 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 o decimal places, e.g. 5,275,) Case A Case B Case C Direct materials used $92,300 143,400 121 3575 (e) 214.000 $64,150 Direct labor 51,000 Manufacturing overhead applied Total manufacturing costs Work in process 1/1/17 Total cost of work in process Work in process 12/31/17 43,350 146,750 25,300 18,500 208,500 i) 15,600 Cost of goods manufactured 196,100 229,900Explanation / Answer
Answer to Question 1:
Case A:
Total Manufacturing Costs = Direct Materials used + Direct Labor + Manufacturing Overhead applied
$146,750 = Direct Materials used + $51,000 + $43,350
Direct Materials used = $52,400
Total Cost of Work in Process = Work in Process 1/1/17 + Total Manufacturing Costs
$208,500 = Work in Process 1/1/17 + $146,750
Work in Process 1/1/17 = $61,750
Cost of Goods Manufactured = Total Cost of Work in Process - Work in Process 12/31/17
$196,100 = $208,500 - Work in Process 12/31/17
Work in Process 12/31/17 = $12,400
Predetermined Overhead Rate = Manufacturing Overhead applied / Direct Labor
Predetermined Overhead Rate = $43,350 / $51,000
Predetermined Overhead Rate = 85% of Direct Labor
Case B:
Manufacturing Overhead applied = 85% * Direct Labor
Manufacturing Overhead applied = 85% * $143,400
Manufacturing Overhead applied = $121,890
Total Manufacturing Costs = Direct Materials used + Direct Labor + Manufacturing Overhead applied
Total Manufacturing Costs = $92,300 + $143,400 + $121,890
Total Manufacturing Costs = $357,590
Total Cost of Work in Process = Work in Process 1/1/17 + Total Manufacturing Costs
Total Cost of Work in Process = $357,590 + $25,300
Total Cost of Work in Process = $382,890
Cost of Goods Manufactured = Total Cost of Work in Process - Work in Process 12/31/17
Cost of Goods Manufactured = $382,890 - $15,600
Cost of Goods Manufactured = $367,290
Case C:
Manufacturing Overhead applied = 85% * Direct Labor
Total Manufacturing Costs = Direct Materials used + Direct Labor + Manufacturing Overhead applied
$214,000 = $64,150 + Direct Labor + 0.85 * Direct Labor
$149,850 = 1.85 * Direct Labor
Direct Labor = $81,000
Manufacturing Overhead applied = 85% * Direct Labor
Manufacturing Overhead applied = 85% * $81,000
Manufacturing Overhead applied = $68,850
Total Cost of Work in Process = Work in Process 1/1/17 + Total Manufacturing Costs
Total Cost of Work in Process = $18,500 + $214,000
Total Cost of Work in Process = $232,500
Cost of Goods Manufactured = Total Cost of Work in Process - Work in Process 12/31/17
$229,900 = $232,500 - Work in Process 12/31/17
Work in Process 12/31/17 = $2,600
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