Question

Manufacturing cost data for Blossom 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
Direct materials used		$enter your answer in dollars rounded to 0 decimal places	(a)		$90,100
Direct labor		50,000			141,000
Manufacturing overhead applied		30,000			enter your answer in dollars rounded to 0 decimal places	(d)
Total manufacturing costs		155,150			enter your answer in dollars rounded to 0 decimal places	(e)
Work in process 1/1/20		enter your answer in dollars rounded to 0 decimal places	(b)		16,300
Total cost of work in process		211,900			enter your answer in dollars rounded to 0 decimal places	(f)
Work in process 12/31/20		enter your answer in dollars rounded to 0 decimal places	(c)		16,000
Cost of goods manufactured		196,100			enter your answer in dollars rounded to 0 decimal places	(g)

Answer 1

Answer :

Case A :

Given data

Direct material used =(a)

Direct Labor=$50,000

Manufacturing Overheads Applied=$30,000

Total Manufacturing costs=$155,150

Workin Process 1/1/20=(b)

Total cost of workin process=$211,900

Workin Process 12/31/20=(c)

Cost of Goods Manufactured=$196,100

Total manufacturing costs=Direct Material used +Direct Labor+Manufacturing Overheads applied

$155,150=(a)+$50,000+$30,000

(a)=$155,150-$50,000-$30,000=$75,150

so (a)=Direct Material USed =$75,150

Total cost of Workin Process=Workin process 1/1/20(opening)+Total Manufacturing costs

$211,900= (b)+$155,150

(b)=$211,900-$155,150=$56,750

So (b)=Workin Process 1/1/20=$56,750

Total cost of Workin Process=Workin process 12/31/20(closing)+Cost of Goods Manufactured

$211,900=(c)+$196,100

(c)=$211,900-$196,100=$15,800

So (c)=Worksin Process 12/31/20(closing)=$15,800

Case B :

Given data

Direct material used =$90,100

Direct Labor=$141,000

Manufacturing Overheads Applied=(a)

Total Manufacturing costs=(b)

Workin Process 1/1/20=$16,300

Total cost of workin process=(c)

Workin Process 12/31/20=$16,000

Cost of Goods Manufactured=(d)

given that overhead rate is calculated on direct labor & rate is same

Over head rate for $1 of Direct Labor=$30,000/$50,000=$0.6

Manufacturing Overheads Applied=(a)=$141,000*$0.6=$84,600

So (a)=Manufacturing Overheads Applied=$84,600

Total manufacturing costs=Direct Material used +Direct Labor+Manufacturing Overheads applied

(b)=$90,100+$141,000+$84,600=$315,700

So (b)=Total manufacturing costs=$315,700

Total cost of Workin Process=Workin process 1/1/20(opening)+Total Manufacturing costs

(c)=$16,300+$315,700=$332,000

So (c)=Total cost of Workin Process=$332,000

Total cost of Workin Process=Workin process 12/31/20(closing)+Cost of Goods Manufactured

$332,000=$16,000+(d)

(d)=$332,000-$16,000=$316,000

So (d)=Cost of Goods Manufactured=$316,000