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. Case 1 Case 2 Case 3Direct material used 15,000 14,100Direct labor 18,000 Manufacturing overhead applied 11,500 Total current manufacturing costs 27,500 28,500Beginning work in process inventory 9,900 8,000Ending work in process inventory 5,900 9,900 Cost of goods manufactured 44,000 26,001Beginning finished goods inventory 4,700 12,000 Ending finished goods inventory 7,600 6,200Cost of goods sold 41,000 36,000Required: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.)

Note: The data in the question are merged together. The data are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.

Also note: See the attached excel file for the table with the computed figure in bold red color.

In the attached excel file, the following calculations are employed:

For Case 1:

Since overhead applied to products at a rate of 150 percent of direct labor cost, we have:

Manufacturing overhead applied = Direct labor * 150% = 18,000 * 150% = 27,000

Total current manufacturing costs = Direct material used + Direct labor + Manufacturing overhead applied = 15,000 + 18,000 + 27,000 = 60,000

Cost of goods manufactured = Total current manufacturing costs + Beginning work in process inventory - Ending work in process inventory = 60,000 + 9,900 - 5,900 = 64,000

Cost of goods sold = Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = 64,000 + 4,700 - 7,600 = 61,100

For Case 2:

Since overhead applied to products at a rate of 150 percent of direct labor cost, we have:

Direct labor = (Manufacturing overhead applied / 150%) * 100% = (11,500 / 150%) * 100% = 7,667

Direct material used = Total current manufacturing costs - Manufacturing overhead applied - Direct labor = 27,500 - 11,500 - 7,667 = 8,333

Beginning work in process inventory = Cost of goods manufactured + Ending work in process inventory - Total current manufacturing costs = 44,000 + 9,900 - 27,500 = 26,400

Ending finished goods inventory = Cost of goods manufactured + Beginning finished goods inventory - Cost of goods sold = 44,000 + 12,000 – 41,000 = 15,000

For Case 3:

Since overhead applied to products at a rate of 150 percent of direct labor cost, we can let:

Direct labor = x

Therefore, we have:

Manufacturing overhead applied = x * 150%

Since,

Total current manufacturing costs = Direct material used + Direct labor + Manufacturing overhead applied ……………………….. (1)

Where;

Total current manufacturing costs = 28,500

Direct material used = 14,100

We can therefore substitute the relevant values into equation (1) and solve for x as follows:

28,500 = 14,100 + x + 1.5x

28,500 - 14,100 = 2.5x

14,400 = 2.5x

x = 14,400 / 2.5

x = 5,760

Therefore;

Direct labor = x = 5,760

and

Manufacturing overhead applied = x * 150% = 5,760 * 150% = 8,640

Ending work in process inventory = Total current manufacturing costs + Beginning work in process inventory - Cost of goods manufactured = 28,500 + 8,000 - 26,001 = 10,499

Beginning finished goods inventory = Cost of goods sold + Ending finished goods inventory - Cost of goods manufactured = 36,000 + 6,200 - 26,001 = 16,199