Question

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	14,000		12,000
Direct labor	13,000
Manufacturing overhead applied		11,500
Total current manufacturing costs		28,000	30,000
Beginning work in process inventory	8,400		7,900
Ending work in process inventory	5,400	8,300
Cost of goods manufactured		47,000	24,001
Beginning finished goods inventory	3,700	11,700
Ending finished goods inventory	7,800		6,700
Cost of goods sold		38,000	41,000

Answer 1

Case 1 Case 2 Case 3 Direct material used 14,000 8833 12,000 Direct labor 13,000 7667 7200 Manufacturing overhead applied 13000*1.5 = 19500 11,500 10800 Total current manufacturing costs 46500 28,000 30,000 Beginning work in process inventory 8,400 27300 7,900 Ending work in process inventory 5,400 8,300 13899 Cost of goods manufactured 49500 47,000 24,001 Beginning finished goods inventory 3,700 11,700 23699 Ending finished goods inventory 7,800 20700 6,700 Cost of goods sold 45400 38,000 41,000