1 Part 1: Information to use in completing is below and the requirements follow where you will answer the questions. 2 3 Glass Company makes glass orders based on the customer specifications, so the company uses job costing to track costs. 4 5 1. The company uses direct labor hours as the cost driver for manufacturing overhead application. 6 The company estimated the following manufacturing overhead costs for the year: 7 The company estimated the following usage of direct-labor hours for the year: 8 9 2. Beginning Work-in-process, March 1 (Job 57) 10 11 3. Beginning Finished Goods, March 1 (Job 55) $787,500 225,000 $80,000 $150,000 12 13 14 2. Labor Information for March: Direct-labor hours: 15 16 17 Job 57 Job 58 Job 59 18 19 20 Labor costs in factory: Direct-labor wages Indirect-labor wages 21 Supervisory salaries 7,000 8,000 5,000 $420,000 $25,000 $30,000 22 23 3. Material Information for March: 24 Raw Materials, Inventory, March 1 $20,000 25 Purchase or raw material $220,000 26 Direct materials requisitioned: 27 Job 57 $80,000 28 Job 58 $75,000 29 Job 59 $51,000 30 31 32 4. Other costs incurred in March: Factory Utilities 33 34 35 36 37 $7,000 Sales offices Utilities $4,000 Administrative offices Utilities $3,000 Factory equipment repair and maintenance costs $6,000 Depreciation on factory equipment $2,000 Manufacturing supplies purchased and used $5,000 38 39 40 5. During March the following jobs were completed: Job 57 41 Job 59 42 6. During March the following jobs were sold for the following amounts: 43 44 Job 55 Job 59 $200,000 45 46 47 $250,000 Required: You need to use cell references to provide answers and calculations. There are 9 questions in Part 1. 1. Develop the predetermined overhead rate. 48 49 50 Estimated Manufacturing Overhead Costs Estimated Usage of Direct Labor Hours Predetermined Overhead Rate $787,500.00 $225,000.00 $3.50 51 52 53 2. Complete the job cost sheets provided below for the month of March: 54 Job 57 Job 58 Job 59 55 56 Beginning Balance $80,000 57 Current costs: 58 Direct materials 59 Direct Labor 60 Applied overhead 61 Total $80,000 $147,000 $24,500 $331,500 62 63 $75,000 $168,000 $105,000 Hint: You need to calculate the hourly rate and then compute direct labor cost per job. $28,000 $17,500 $271,000 $173,500 13. Determine the ending Work-In-Process Inventory at the end of March and provide the Job number of the job(s) still in Work-in-Process at the end of March and the determine total cost of ending work in process for March. 51,000 64 65 66 67 4. Determine the ending Finished Goods for March and provide the Job number(s) of the job(s) in Finished Goods at the end of March and determine the total cost of ending finished goods for March. 68 69 70