Abby Wilson and Jeremy Cornell (both 17 years old) have been neighbours and friends since they were 5! Over the years they have developed a friendship based on trust and fashion! Neither can get enough of the latest trends! The only problem is that in their home town, the latest trends in fashion are very hard to come by. In order to solve that problem they decide in June 2021 to start their own company called Tanks and Tees Inc. Without any experience in accounting or business, they renovated Abby's parents shed and started making some pretty awesome tank tops and t shirts. They were so awesome in fact that they simply couldn't keep them in stock. As fast as they were making them, they were sold!! Given their success, Jeremy's parents suggested that they speak with you about some possible accounting advice to ensure that they are pricing their clothing appropriately and keeping track of costs so that they can report their earnings appropriately. In September 2021 they met with you to provide you with the following actual results from June to September: Sales Tanks and T Shirts Average Price Total Actual sales 298 $ 34.0067 $ 10,134.00 - There was no finished goods inventory at September 30, 2021 Materials Square Average meters Price 276 $ 11.4419 $ Material purchases Total 3,157.96 Square Average meters Price Total Material purchases 276 $ 11.4419 $ 3,157.96 - Material purchases are equal to: 1.08 square meter of material per unit sold. Abby and Jeremy think that because they are further down the learning curve that they will use less material going forward. They expect that they will use: 0.97 meters per unit going forward. - There was no raw materials inventory at September 30, 2021 Labour Hours Average worked Price Total Direct labour 120 $ 15.0000 $ 1,800.00 - Direct labour was are equal to: 0.40 hours per unit sold. Abby and Jeremy think that because they are further down the learning curve that they will be more efficient with their time going forward. They expect that they will use: 0.24 hours per unit going forward. Manufacturing overhead 4 months Total manufacturing overhead costs for June through September were as follows: Hydro and gas for the shed $ 94.11 Depreciation of the shed $ 60.00 Thread $ 268.68 Depreciation of the sewing machines $ 23.53 Selling and administrative costs 4 months Total selling and administrative costs for June through September were as follows: Advertising $ 40.00 Bank fees $ 20.00 Office supplies $ 15.00 Additional budgeted information for the month of October 2021 $ S Abby and Jeremy explain that: 1) Unit sales for the month are expected to be: 2) Material purchases are expected to be: 3) Direct labour is expected to be: 4) Manufacturing overhead costs are expected to be: S 5) Selling and administrative costs are expected to be: S 82 units at 79.70 meters at 19.68 hours at 111.58 18.75 34.0067 per unit = 11.4419 per meter 15.0000 per hour= $ $ $ 2,788.35 911.92 295. Actual results for the month of October 2021 (Obtained on November 9, 2021) $ $ $ 3,666.18 1,760.00 299.10 1) Unit sales for the month were: 2) Material purchases were: 3) Direct labour was: 4) Manufacturing overhead was: 5) Selling and administrative costs were: 6) Ending raw materials inventory was equal to: 7) Ending work in process inventory was: 8) Ending finished goods inventorv was: 98 units at S 37.4100 per unit = 160 meters at $ 11.0000 per meter = 19.94 hours at $ 15.0000 per hour 109.95 20.00 30% of purchases made in the month of October $ $ S S 1) What is the predetermined manufacturing overhead rate for Tanks and Tees Inc.? (Manufacturing overhead is allocated based on direct labour hours) (Do not round your answer. Show your work.) 2) Record the journal entry for material purchases for cash during the month of October 2021 (Note that all journal entries must be in good form) Date Description PR DR CR 3) Record the journal entry for materials transferred into production during the month of October 2021 Date Description PR DR CR 4) Record the journal entry for direct labour paid in cash during the month of October 2021 Date Description PR DR CR 5) Record the journal entry for manufacturing overhead incurred during the month of October 2021 and payable in Novemt Date Description PR DR CR 6) Record the journal entry to allocate manufacturing overhead to inventory during the month of October 2021 Date Description PR DR CR 7) Record the journal entry to transfer work in process to finished goods Date Description PR DR CR 8) Record revenue (assuming all were for cash) and update inventory to reflect inventory sold Date Description PR DR CR 9) Record the journal entry to close the balance in manufacturing overhead to COGS during the month of October 2021 Date Description PR DR CR Abby Wilson and Jeremy Cornell (both 17 years old) have been neighbours and friends since they were 5! Over the years they have developed a friendship based on trust and fashion! Neither can get enough of the latest trends! The only problem is that in their home town, the latest trends in fashion are very hard to come by. In order to solve that problem they decide in June 2021 to start their own company called Tanks and Tees Inc. Without any experience in accounting or business, they renovated Abby's parents shed and started making some pretty awesome tank tops and t shirts. They were so awesome in fact that they simply couldn't keep them in stock. As fast as they were making them, they were sold!! Given their success, Jeremy's parents suggested that they speak with you about some possible accounting advice to ensure that they are pricing their clothing appropriately and keeping track of costs so that they can report their earnings appropriately. In September 2021 they met with you to provide you with the following actual results from June to September: Sales Tanks and T Shirts Average Price Total Actual sales 298 $ 34.0067 $ 10,134.00 - There was no finished goods inventory at September 30, 2021 Materials Square Average meters Price 276 $ 11.4419 $ Material purchases Total 3,157.96 Square Average meters Price Total Material purchases 276 $ 11.4419 $ 3,157.96 - Material purchases are equal to: 1.08 square meter of material per unit sold. Abby and Jeremy think that because they are further down the learning curve that they will use less material going forward. They expect that they will use: 0.97 meters per unit going forward. - There was no raw materials inventory at September 30, 2021 Labour Hours Average worked Price Total Direct labour 120 $ 15.0000 $ 1,800.00 - Direct labour was are equal to: 0.40 hours per unit sold. Abby and Jeremy think that because they are further down the learning curve that they will be more efficient with their time going forward. They expect that they will use: 0.24 hours per unit going forward. Manufacturing overhead 4 months Total manufacturing overhead costs for June through September were as follows: Hydro and gas for the shed $ 94.11 Depreciation of the shed $ 60.00 Thread $ 268.68 Depreciation of the sewing machines $ 23.53 Selling and administrative costs 4 months Total selling and administrative costs for June through September were as follows: Advertising $ 40.00 Bank fees $ 20.00 Office supplies $ 15.00 Additional budgeted information for the month of October 2021 $ S Abby and Jeremy explain that: 1) Unit sales for the month are expected to be: 2) Material purchases are expected to be: 3) Direct labour is expected to be: 4) Manufacturing overhead costs are expected to be: S 5) Selling and administrative costs are expected to be: S 82 units at 79.70 meters at 19.68 hours at 111.58 18.75 34.0067 per unit = 11.4419 per meter 15.0000 per hour= $ $ $ 2,788.35 911.92 295. Actual results for the month of October 2021 (Obtained on November 9, 2021) $ $ $ 3,666.18 1,760.00 299.10 1) Unit sales for the month were: 2) Material purchases were: 3) Direct labour was: 4) Manufacturing overhead was: 5) Selling and administrative costs were: 6) Ending raw materials inventory was equal to: 7) Ending work in process inventory was: 8) Ending finished goods inventorv was: 98 units at S 37.4100 per unit = 160 meters at $ 11.0000 per meter = 19.94 hours at $ 15.0000 per hour 109.95 20.00 30% of purchases made in the month of October $ $ S S 1) What is the predetermined manufacturing overhead rate for Tanks and Tees Inc.? (Manufacturing overhead is allocated based on direct labour hours) (Do not round your answer. Show your work.) 2) Record the journal entry for material purchases for cash during the month of October 2021 (Note that all journal entries must be in good form) Date Description PR DR CR 3) Record the journal entry for materials transferred into production during the month of October 2021 Date Description PR DR CR 4) Record the journal entry for direct labour paid in cash during the month of October 2021 Date Description PR DR CR 5) Record the journal entry for manufacturing overhead incurred during the month of October 2021 and payable in Novemt Date Description PR DR CR 6) Record the journal entry to allocate manufacturing overhead to inventory during the month of October 2021 Date Description PR DR CR 7) Record the journal entry to transfer work in process to finished goods Date Description PR DR CR 8) Record revenue (assuming all were for cash) and update inventory to reflect inventory sold Date Description PR DR CR 9) Record the journal entry to close the balance in manufacturing overhead to COGS during the month of October 2021 Date Description PR DR CR