Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
Mulligan Manufacturing Company uses a job order cost system with overhead applied to products at a rate of 150 percent of direct labor cost
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 12,900 15,000 12,000 12,000 25,000 31,200 8,300 8,500 Direct labor Manufacturing overhead applied Total current manufacturing costs Beginning work in process inventory Ending work in process inventory Cost of goods manufactured Beginning finished goods inventory Ending finished goods inventory Cost of goods sold 5,900 9,400 4,001 47,000 10,100 5,000 8,500 5,100 36,000 41,000
Expert Solution
| Case 1 | Case 2 | Case 3 | ||
| Direct material used (A) | $ 15,000 | $ 5,000 | $ 12,900 | |
| Direct Labor (B) | $ 12,000 | $ 8,000 | $ 7,320 | (Working note: 2) |
| Manufacturing overhead applied ( C ) | $ 18,000 | $ 12,000 | $ 10,980 | |
| Total Manufacturing costs(A+B+C) | $ 45,000 | $ 25,000 | $ 31,200 | |
| Add: Beginning WIP Inventory | $ 8,500 | $ 31,400 | $ 8,300 | |
| Deduct: Ending WIP Inventory | $ 5,900 | $ 9,400 | $ 35,499 | |
| Cost of Goods Manufactured | $ 47,600 | $ 47,000 | $ 4,001 | |
| Add: Beginning Finished Goods Inventory | $ 5,000 | $ 10,100 | $ 42,099 | |
| Deduct: Ending Fimished Goods Inventory | $ 8,500 | $ 21,100 | $ 5,100 | |
| Cost of Goods Sold | $ 44,100 | $ 36,000 | $ 41,000 |
Working note 1:
| Case 1 | Case 2 | Case 3 | |
| Direct material used (A) | $ 15,000 | 25000-12000-8000 | $ 12,900 |
| Direct Labor (B) | $ 12,000 | 12000*100/150 | $ 7,320 |
| Manufacturing overhead applied ( C ) | 12000*150% | $ 12,000 | 7320*150% |
| Total Manufacturing costs(A+B+C) | 15000+12000+18000 | $ 25,000 | $ 31,200 |
| Add: Beginning WIP Inventory | $ 8,500 | 47000+9400-25000 | $ 8,300 |
| Deduct: Ending WIP Inventory | $ 5,900 | $ 9,400 | 31200+8300-4001 |
| Cost of Goods Manufactured | 45000+8500-5900 | $ 47,000 | $ 4,001 |
| Add: Beginning Finished Goods Inventory | $ 5,000 | $ 10,100 | 41000+5100-4001 |
| Deduct: Ending Fimished Goods Inventory | $ 8,500 | 47000+10100-36000 | $ 5,100 |
| Cost of Goods Sold | 47600+5000-8500 | $ 36,000 | $ 41,000 |
Working note 2:
Case 3:
Assume, Direct Labor = x
Then, $ 12,900+ x + (x* 150%) = $ 31,200
25x/10 = $ 18,300
Therefore x = $ 7,320
Hence, Direct labor = $ 7,320
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.





