2) Job-Cost System ADC will often do a "production run" where ADC sets-up the machines to produce stock drums. A production run may consist of anywhere from 100 to 1,000 identical drums. Each production run is considered to be a job and requires a single job-cost sheet. Increasingly, ADC is also creating custom drums as requested by famous touring music acts. These custom drums also require a job cost sheet. ADC updates all of its cost data at the end of each and every week. The following information pertains to the the 3rd week in April. Information regarding the predetermined manufacturing overhead rate for ADC is as follows Total estimated manufacturing overhead for the entire year: $ 500,000 Total estimated direct labor dollars for the entire year $ 909,100 What is the predetermined overhead rate based on direct labor cost? ADC keeps a large amount of inventory such as wood shells, drum heads, and metal hardware. Beginning-of-the-week Direct Raw Materials Inventory balance $ 55,800 Purchases of Direct Raw Materials during the current week $ 38,130 Included below are job-cost sheets for the production activities in process at the beginning of the current week. That is, all of the costs included on the job-cost sheets represent manufacturing activity up until the beginning of the current week. Only twojobs were in production at the start of the week. Job Cost Sheet Blue Sparkle Drums - 500 sets Direct Labor 200 hrs $ 125 hrs $ Job Cost Sheet Redwood Congas - 100 drums Direct Labor 100 hrs $ 3,000 6,000 3,750 D. Raw Materials D. Raw Materials $ $ 25,600 35,000 $ $ 13,620 4,891 Applied Overhead $ $ 3,300 2,063 Applied Overhead $ 1,650 yes no is the job complete yes Total Cost Completed Job Is the job complete? Total Cost Completed Job Job Cost Sheet Metallic Red Drums Job Cost Sheet African Djembe Drums Direct Labor Direct Labor D. Raw Materials D. Raw Materials Applied Overhead Applied Overhead no yes no Is the job completelyes Total Cost Completed Job Is the job complete? Total Cost Completed Job There are drums in the ADC warehouse that are complete, ready to be paid for by customers, and ready to be picked up. The cost of all finished drums ready for payment and pick-up at the beginning of the week equals: $ 85,000 The supervisor responsible for the workers who build the drums submitted the following direct labor report for the current week. Direct labor compensation, including all payroll taxes and benefits averages $30 /hour. The report details how many hours were worked on the various jobs including new jobs (production runs) initiated during the current week. This report is also used to apply overhead. Use the report to up-date the job cost sheets. Direct Labor Report Current Week Direct Labor Hours Job Redwood Congas - 100 drums Blue Sparkle Drums -500 sets Metallic Red Drums - 50 sets African Djembe Drums - 75 drums Total labor hours (DL is paid an average of $30/hr.) The supervisor in charge of the Raw Materials Inventory provided the following report that lists the raw materials used on the various jobs. Use this report to up-date the job cost sheets. Direct Raw Materials Used Report Current Week Job Redwood Congas - 100 drums Blue Sparkle Drums - 500 sets Metallic Red Drums - 50 sets African Djembe Drums - 75 drums Raw Materials Used 3,000 16,940 8,720 8,520 Total Raw Materials Used During current Week 37,180 Estimated Ending Raw Materials Inventory $ 56,750 During the week the Redwood Congas - 100 drums were completed and moved into the finished goods inventory warehouse. The Blue Sparkle Drums, Metallic Red Drums, and African Djembe Drums were not completed and were still in process at the end of the week. What is the value of the Work-in-Process at the end of the week? Tnote: the Redwood Congas are complete and moved to finished goods) The Redwood Congas - 100 drums were sold, paid for, and picked up by the customer. The retail sales price for Redwood Congas - 100 drums was: $ 52,000 How much gross profit was earned on Redwood Congas - 100 drums? What was (were) the accounting journal entry(s) to record the sale of the Redwood Congas? Management estimates that the value of ending Finished Goods Inventory at the end of the current week at cost equals: | $ 75,000 Complete a Statement of Cost of Goods Manufactured and sold for the current week. 2) Job-Cost System ADC will often do a "production run" where ADC sets-up the machines to produce stock drums. A production run may consist of anywhere from 100 to 1,000 identical drums. Each production run is considered to be a job and requires a single job-cost sheet. Increasingly, ADC is also creating custom drums as requested by famous touring music acts. These custom drums also require a job cost sheet. ADC updates all of its cost data at the end of each and every week. The following information pertains to the the 3rd week in April. Information regarding the predetermined manufacturing overhead rate for ADC is as follows Total estimated manufacturing overhead for the entire year: $ 500,000 Total estimated direct labor dollars for the entire year $ 909,100 What is the predetermined overhead rate based on direct labor cost? ADC keeps a large amount of inventory such as wood shells, drum heads, and metal hardware. Beginning-of-the-week Direct Raw Materials Inventory balance $ 55,800 Purchases of Direct Raw Materials during the current week $ 38,130 Included below are job-cost sheets for the production activities in process at the beginning of the current week. That is, all of the costs included on the job-cost sheets represent manufacturing activity up until the beginning of the current week. Only twojobs were in production at the start of the week. Job Cost Sheet Blue Sparkle Drums - 500 sets Direct Labor 200 hrs $ 125 hrs $ Job Cost Sheet Redwood Congas - 100 drums Direct Labor 100 hrs $ 3,000 6,000 3,750 D. Raw Materials D. Raw Materials $ $ 25,600 35,000 $ $ 13,620 4,891 Applied Overhead $ $ 3,300 2,063 Applied Overhead $ 1,650 yes no is the job complete yes Total Cost Completed Job Is the job complete? Total Cost Completed Job Job Cost Sheet Metallic Red Drums Job Cost Sheet African Djembe Drums Direct Labor Direct Labor D. Raw Materials D. Raw Materials Applied Overhead Applied Overhead no yes no Is the job completelyes Total Cost Completed Job Is the job complete? Total Cost Completed Job There are drums in the ADC warehouse that are complete, ready to be paid for by customers, and ready to be picked up. The cost of all finished drums ready for payment and pick-up at the beginning of the week equals: $ 85,000 The supervisor responsible for the workers who build the drums submitted the following direct labor report for the current week. Direct labor compensation, including all payroll taxes and benefits averages $30 /hour. The report details how many hours were worked on the various jobs including new jobs (production runs) initiated during the current week. This report is also used to apply overhead. Use the report to up-date the job cost sheets. Direct Labor Report Current Week Direct Labor Hours Job Redwood Congas - 100 drums Blue Sparkle Drums -500 sets Metallic Red Drums - 50 sets African Djembe Drums - 75 drums Total labor hours (DL is paid an average of $30/hr.) The supervisor in charge of the Raw Materials Inventory provided the following report that lists the raw materials used on the various jobs. Use this report to up-date the job cost sheets. Direct Raw Materials Used Report Current Week Job Redwood Congas - 100 drums Blue Sparkle Drums - 500 sets Metallic Red Drums - 50 sets African Djembe Drums - 75 drums Raw Materials Used 3,000 16,940 8,720 8,520 Total Raw Materials Used During current Week 37,180 Estimated Ending Raw Materials Inventory $ 56,750 During the week the Redwood Congas - 100 drums were completed and moved into the finished goods inventory warehouse. The Blue Sparkle Drums, Metallic Red Drums, and African Djembe Drums were not completed and were still in process at the end of the week. What is the value of the Work-in-Process at the end of the week? Tnote: the Redwood Congas are complete and moved to finished goods) The Redwood Congas - 100 drums were sold, paid for, and picked up by the customer. The retail sales price for Redwood Congas - 100 drums was: $ 52,000 How much gross profit was earned on Redwood Congas - 100 drums? What was (were) the accounting journal entry(s) to record the sale of the Redwood Congas? Management estimates that the value of ending Finished Goods Inventory at the end of the current week at cost equals: | $ 75,000 Complete a Statement of Cost of Goods Manufactured and sold for the current week