1. Use T-accounts to track product cost flows through Raw Materials, Work In Process, Finished Goods, Manufacturing Overhead, and COGS. Remember to use the inventory accounts as control accounts only.

2. Set up a job cost sheet for Jobs 1010, 1011, 1012, and 1013 and record manufacturing cost. Attach a separate schedule showing how manufacturing overhead cost were calculated for each job.

3. Calculate any over or under-applied overhead

4. Determine the ending balances of the inventory accounts that would appear on the balance sheet at the end of the accounting period assuming over or under-applied overhead is closed to COGS.

5. Prepare an income statement for the current accounting period assuming over or under-applied overhead is closed to COGS.

Due: Thursday December 4th at 8 am

J & B started the current accounting period with the following general ledger ba he following general ledger balances: $16.000 50,650 Raw materials .... Work in process (Job 1010)......... Finished goods ......... The following transactions occurred during the month: -0- $250,000 1. Raw materials purchased on account. ... 2. Raw materials requisitioned for production. Job 1010......... Job 1011 ......... .. Job 1012................ Job 1013............ Indirect materials ........ $31,500 52,500 34,500 15,000 26,700 $160,200 3. Labor costs incurred Job 1010............... Job 1011 ............... Job 1012............. Job 1013.................. Indirect labor wages ........... Sales and administrative wages and salaries $21,000 35,500 22,500 10,500 UE 35,500 220,000 $345,000 Supervisors 4. Utility costs incurred Factory facilities.... .. Sales and administrative offices ........ $20,250 8.750 $29,000 5. Recorded depreciation Factory equipment. Sales and administrative offices. . . . . . . . $ 6,675 11.000 $17,675 $8,000 6. Incurred advertising costs ...... 7. Applied manufacturing overhead costs to jobs using activity-based costing. 8. Job 1010 and Job 1011 were completed and transferred to finished goods. 9. Job 1010 was sold on account for $371,500. Bids for the following jobs were submitted by J&B Company and accepted by customers Job 1010-1,850 units Job 1011-1.750 units Job 1012 - 2.000 units Job 1013-1.500 units Manufacturing overhead J & B uses activity-based costing to apply manufacturing overhead to each job. J & B estimated the following overhead costs and expected activity for each cost pool: Estimated OH Activity cost pool Activity measure overhead cost Expected Activity Depreciation Number of units 7,100 units $ 10,650 Number of inspections Inspection 48 inspections $2,400 Machine setup Number of setups $28,400 142 setups Supervision Direct labor hours (DLH) 7.100 DLH $35,500 $26,700 Supplies Direct material costs $133,500 Utilities Machine hours (MH) $ 14,200 3.550 MH Beg up At the beginning of the month, Job 1010 had 800 completed units at a cost of $50,650, Jobs 1011, 1012, and 1013 were started during the month. Jobs 1010 and 1011 were completed during the month, and Job 1010 was sold during the month. Actual results at the end of the month are as follows: Job 1010 1,050 Job 1011 1,750 Job 1012 1,150 Joh 1013 500 Number of units produced Number of setups 35 40 Machine hours 525 MH 900 MH 570 MH 14 265 MH 3 Number of inspections 12 Direct labor hours 1,050 DLH 1,775 DLH 1,125 DLH 525 DLH