Tappan, Inc., manufactures one product and accounts for costs using a job cost s

Question

Tappan, Inc., manufactures one product and accounts for costs using a job cost system. You have obtained the following information from the corporation's books and records for the year ended December 31, Year 1 Total manufacturing cost during the year was $2,366,000 based on actual direct material, actual direct labor, and applied manufacturing overhead Manufacturing overhead was applied to work in process at 150 percent of direct labor dollars. Applied manufacturing overhead for the year was 20 percent of the total manufacturing cost during the year Required: Compute actual direct material used, actual direct labor, and applied manufacturing overhead (Round your intermediate and final answers to nearest whole dollar value.) Direct material used Direct labor Manufacturing overhead applied References eBook & Resources Exercise Difficulty. TEasy RD: Study341

Explanation / Answer

Total Manufacturing Cost=$ 2366000

As per question

Appiled Manufacturing overhead was 20% of Total Manufacturing cost

hence Manufacturing overhead=20% of $2366000

=$ 473200

Again from question

Appiled manucaturing overhead was 150 % of Direct Labour Dollors

150% of Direct Labour Dollors=$ 473200

Direct Labour Dollors=$ 315467

Direct Material= Total Manufactruing cost-direct Lobour-Manufacturing overhead

=$ 2366000-$ 473200-$ 315467

=$ 1577333

Particulars Amount Direct Materail $ 1577333 Direct Labour $ 315467 Manufacturing Overhead $ 473200 Total Manufacturing Cost $ 2366000

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