In: Accounting
E2-6 (Algo) Finding Unknown Values in the Cost of Goods Manufactured Report [LO 2-3, 2-6]
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, find the missing amounts. You should do them in
the order listed. (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 calculations. Round your
final answers to the nearest whole dollar. Enter all amounts as
positive values.)
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General formulas
1. Total current manufacturing cost= Direct materials used + direct labor + manufacturing overheads
2. Cost of goods manufactured= total current manufacturing cost + beginning work in process inventory - ending work in process inventory
3. Cost of goods sold= cost of goods manufactured+beginning finished goods- ending finished goods.