Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sheds, Inc. designs and builds sheds and outbuildings for individual customers. The company uses a job cost system and treats each customer's order as a

Sheds, Inc. designs and builds sheds and outbuildings for individual customers.

The company uses a job cost system and treats each customer's order as a separate job.

At the beginning of January the company had the following raw material inventory: . . . . . . . . . . . . . . . $600

At the beginning of January the company had the following work-in-process inventories:

At the beginning of January the company had the following work-in-process inventories:

Job . . . . . . . . . . . . . . 21$13,000

Job . . . . . . . . . . . . . . 25$9,000

During January, the following activities took place:

1. Started jobs 26 and 27.

2. Purchased raw materials in January:$12,000

Requisitioned (or used) the following raw materials to the specific jobs:

Job . . . . . . . . . . . . . . 21$2,000

Job . . . . . . . . . . . . . . 25$5,000

Job . . . . . . . . . . . . . . 26$1,000

Job . . . . . . . . . . . . . . 27$3,000

3. Incurred January manufacturing payroll:
Direct Labor

Job . . . . . . . . . . . . . . 21$750
Job . . . . . . . . . . . . . . 25$2,000
Job . . . . . . . . . . . . . . 26$900
Job . . . . . . . . . . . . . . 27$1,500

Indirect labor$600

4. Incurred additional manufacturing overhead costs for January:

Production equipment rent. . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,000

Manufacturing supplies purchased and used . . . . . . . . . . . . . . $800

Factory utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$500

5. Applied manufacturing overhead using a predetermined rate based on predicted annual overhead and predicted annual direct material cost as follows:

Predicted Annual Overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . $48,000

Predicted Annual Direct Material cost . . . . . . . . . . . . . . . . . . . $120,000

6. Completed jobs 25 and 27.

7. Customer for Job 27 picked up completed job and was billed the following:

Job 27 . . . . . . . . . . . . . . 12,000

8. The company had the following period costs that they incurred:

Sales commissions . . . . . . . . . . . . . . . . . . $2,000

Administrative salaries. . . . . . . . . . . . . . $3,000


1. Determine the Finished Goods for January and provide the number of the Jobs in Finished Goods at the end of January and determine the total cost of ending finished goods for January.
2. Determine the Cost of Goods Sold for January and provide the number of the Jobs in Cost of Goods Sold for January and determine the total cost of goods sold for January.
3. Determine the ending Work-In-Process Inventory at the end of January and provide the number of the Jobs still in Work-in-Process at the end of January and the determined total cost of ending work in process for January.

Step by Step Solution

3.44 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

Job Sheet job 21 job 25 job26 job 27 total Beginning work in process 13000 9000 22000 Cost added ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Document Format ( 2 attachments)

PDF file Icon
609aed08d884a_31136.pdf

180 KBs PDF File

Word file Icon
609aed08d884a_31136.docx

120 KBs Word File

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting concepts and applications

Authors: Albrecht Stice, Stice Swain

11th Edition

978-0538750196, 538745487, 538750197, 978-0538745482

More Books

Students also viewed these Accounting questions

Question

What is the main purpose of a statement of cash flows?

Answered: 1 week ago