Question

Manufacturing 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 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 a dollar amount	(a)		$91,800
Direct labor		60,000			144,800
Manufacturing overhead applied		36,000			enter a dollar amount	(d)
Total manufacturing costs		151,450			enter a dollar amount	(e)
Work in process 1/1/20		enter a dollar amount	(b)		22,100
Total cost of work in process		207,900			enter a dollar amount	(f)
Work in process 12/31/20		enter a dollar amount	(c)		14,100
Cost of goods manufactured		198,600			enter a dollar amount

Answer 1

	Case A		Case B
Direct materials used	55,450		91,800
Direct labor	60,000		144,800
Manufacturing overhead applied	36,000		86,880	(36,000/60,000 x 144,800)
Total manufacturing costs	151,450		323,480
Add: Work in process 1/1/20	56,450		22,100
Total cost of work in process	207,900		345,580
Less: Work in process 12/31/20	9,300		14,100
Cost of goods manufactured	198,600		331,480