E2-6 Finding Unknown Values in the Cost of Goods Manufactured Report [LO 2-3, 2-6] Mulligan Manufacturing...

E2-6 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.)

	Case 1	Case 2	Case 3
Direct material used	15,000		14,400
Direct labor	11,000
Manufacturing overhead applied		11,000
Total current manufacturing costs		28,500	28,200
Beginning work in process inventory	9,200		8,300
Ending work in process inventory	4,200	9,400
Cost of goods manufactured		48,000	1
Beginning finished goods inventory	3,500	11,600
Ending finished goods inventory	7,900		5,200
Cost of goods sold		36,000	40,000

Expert Solution

Direct material used+Direct labor+Manufacturing overhead applied=Total current manufacturing cost

Total current manufacturing cost+Beginning work in process inventory-Ending work in process inventory=Cost of goods manufactured

Cost of goods manufactured+Beginning finished goods inventory-Ending finished goods inventory=COGS

For case 3:

Direct labor+Manufacturing overhead applied=(28200-14400)=13800

Direct labor+1.5Direct labor=13800

Hence direct labor=(13800/2.5)=$5520

	Case 1	Case 2	Case 3
Direct material used	15,000	$10167	14,400
Direct labor	11,000	$7333	$5520
Manufacturing overhead applied	$16500	11,000	$8280
Total current manufacturing costs	$42500	28,500	28,200
Beginning work in process inventory	9,200	$28900	8,300
Ending work in process inventory	4,200	9,400	$ 36499
Cost of goods manufactured	$47500	48,000	1
Beginning finished goods inventory	3,500	11,600	$45199
Ending finished goods inventory	7,900	$23600	5,200
Cost of goods sold	$43100	36,000	40,000

ekkarill92 answered 1 year ago

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