ASSIGNMENT 1 - Reconcile manufacturing-related inventory accounts REQUIREMENTS Examine the Job Cost Sheets in the Document Folder. Look at the sum of direct materials, direct labor, and manufacturing overhead that have been charged to jobs as of November 30, 2019 Learning Objectives: At the end of this assignment, you will be able to reconcile manufacturing- related inventory accounts with job cost sheets and trace transactions to source documents. Core Concept Reviews Job-Order Costing Product and Period Costs - Applying Manufacturing Overhead Source Documents and Internal Controls 2 Review the Source Documents from the Documents Folder that relate to jobs in work-in-process or finished goods inventory as of November 30, 2019. 3. Review the Transactions List for December 2019 in the Documents Folder. Highlight the transactions that relate to manufacturing product costs. 4. Examine the Cost Sheet on page 10 of the Gatsby's Accounting System and Policies section to understand how much more costs it will take to complete the jobs in work in-process inventory at November 30, 2019. 5. Complete the worksheet below by accounting for all the jobs in beginning work-in- process or finished goods inventory at December 1, 2019. Refer to the Job Cost Sheets in the Documents Folder; then add any new jobs started in December as seen in the Transactions List. December 2019 (indicate started, completed, and/or sold) Job November 2019 (indicate started, completed, and/or sold) Customer Quantity No. 220 Abernathy & Fetch sooo Document No. 3 TRANSACTIONS LIST December 1-31, 2019 December 1 Paid wages payable and payroll taxes payable electronically, 2 Shipped Job #220 to Abernathy & Fetch with a sales invoice S Paid outstanding accounts payable and other payables that were due in full (paid electronically): 5 Ordered 100 rolls of denim from Denim Inc. using purchase order No. 556. Freight terms are FOB shipping point 6 Job #221 Whiskey & Soda was completed. 9 Job #221 Whiskey & Soda was packed, shipped, and invoiced. Terms are n/30. Shipping costs paid by customer. 10 Received check from Cool Creed for a shipment made to them in November in the amount of $225,000. 10 Received the 100 rolls of denim that were ordered from Denim Inc. on December 5, 2019, as listed on purchase order No. 556. Denim Inc.'s vendor invoice No. 7423 for $300,000 was received with the goods. Terms are n/30 11 Received the supplies that were ordered from Notions Inc. on November 30, 2019, as listed on purchase order No. 549. Notions Inc.'s vendor invoice No. 257 for $20,000 was received with the goods. Terms are n/30. 16 Job #222 for K. Brand was completed, packed, shipped, and invoiced. Terms are n/30. 16 A new order from AH was received for 11,000 pairs of jeans. 18 Design work was completed for AH. AH accepted the design work and agreed to a price of $45 per pair. Assigned Job #223 to the AH order. 18 18 Requisitioned denim into Work in Process for the AH order. Requisitioned notions/supplies (indirect materials) for the AH order Paid Notions Inc electronically for their Dec 11 invoice 20 20 Job #223 for AH was completed. 20 Job #223 for A was packed shipped, and invoiced. Packing costs are a part of MOH. Other shipping costs will be paid by the customer. Terms are n/30 24 A new order for 8,000 pairs of jeans was received from Belt Buckle. 2.4 24 Design work was completed for Belt Buckle. They accepted the design work. Belt Buckle was assigned Job 224. Contract price is $45 per pair A new order for 15,000 pairs of jeans was received from Cool Creed. Denim was requisitioned into Work-in-Process for Belt Buckle lob #224 Requisitioned notions/supplies (indirect materials) for Belt Buckle Job 27 27 #224. 27 Cool Creed accepted the design work and was assigned Job #225. The contract price is $40 per pair 30 Completed one-half of the sewing direct labor on Job #224 for Belt Buckle. 30 Job #225 direct materials were requisitioned into Work-in-process. No work has been completed on the job as of month-end. 30 Paid $25,000 of principal and $1,250 of interest expense on the Note Payable to First Bank Paid $10,000 on the mortgage principal and $800 of interest expense to Commerce Bank. 30 Recorded and paid the following administrative and selling expenses Administrative & selling costs $12,750 per Apex Payroll Service's Invoice No. 18633 (includes payroll and payroll taxes). Office supplies and utilities $450. Payroll services expense $200. Job Order No. 220 Contract Price 140 Date Started W/15/19 Document No 5 JOB COST SHEET Customer Name Abernathy Fetch Quantity 5.000 Date Completed /20/19 DATE 11/15/19 DIRECT MATERIALS COST 75.000 DATE 1/18/19 DATE /18/19 APPLIED OVERHEAD COST 10,000 11/18/19 W/20/19 DIRECT LABORE COST 50.000 18,750 2.083 + Extra work 3,750 W/18/19 8/20/19 4IT TOTAL 75.000 TOTAL +70,833 TOTAL 114.167 COST SUMMARY: Direct Materials $75,000 Direct Labor $70,833 Cost Per Unit 32.00 Overhead $14.167 Total 160,000 Signature - Production Manager os Job Order No. 221 Contract Price +40 Date Started 1/18/19 Document Nos JOB COST SHEET Customer Name Whiskey & Soda Quantity 10,000 Date Completed DIRECT MATERIALS COST DATE DIRECT LABOR COST 100.000 DATE 1/2.0/19 APPLIED OVERHEAD DATE COST 1/20/19 20.000 1/18/19 150.000 1/21/19 18.750 11/21/19 3,750 TOTAL $150.000 TOTAL TOTAL OST SUMMARY: irect Materials irect Labor Cost Per Unit verhead otal Signature - Production Manager Documento Job Order No. 222 Contract Price $42 JOB COST SHEET Customer Name K Brand Quantity 2.000 Date Completed Date Started 11/25/19 DIRECT MATERIALS DATE COST 11/25/19 30,000 DIRECTLABOR COST APPLIED OVERHEAD COST 11/25/19 2.000 DATE 1/25/19 DATE 10.000 TOTAL TOTAL TOTAL $30.000 COST SUMMARY: Direct Materials Direct Labor Cost Per Unit Overhead Total Signature - Production Manage ASSIGNMENT 1 - Reconcile manufacturing-related inventory accounts REQUIREMENTS Examine the Job Cost Sheets in the Document Folder. Look at the sum of direct materials, direct labor, and manufacturing overhead that have been charged to jobs as of November 30, 2019 Learning Objectives: At the end of this assignment, you will be able to reconcile manufacturing- related inventory accounts with job cost sheets and trace transactions to source documents. Core Concept Reviews Job-Order Costing Product and Period Costs - Applying Manufacturing Overhead Source Documents and Internal Controls 2 Review the Source Documents from the Documents Folder that relate to jobs in work-in-process or finished goods inventory as of November 30, 2019. 3. Review the Transactions List for December 2019 in the Documents Folder. Highlight the transactions that relate to manufacturing product costs. 4. Examine the Cost Sheet on page 10 of the Gatsby's Accounting System and Policies section to understand how much more costs it will take to complete the jobs in work in-process inventory at November 30, 2019. 5. Complete the worksheet below by accounting for all the jobs in beginning work-in- process or finished goods inventory at December 1, 2019. Refer to the Job Cost Sheets in the Documents Folder; then add any new jobs started in December as seen in the Transactions List. December 2019 (indicate started, completed, and/or sold) Job November 2019 (indicate started, completed, and/or sold) Customer Quantity No. 220 Abernathy & Fetch sooo Document No. 3 TRANSACTIONS LIST December 1-31, 2019 December 1 Paid wages payable and payroll taxes payable electronically, 2 Shipped Job #220 to Abernathy & Fetch with a sales invoice S Paid outstanding accounts payable and other payables that were due in full (paid electronically): 5 Ordered 100 rolls of denim from Denim Inc. using purchase order No. 556. Freight terms are FOB shipping point 6 Job #221 Whiskey & Soda was completed. 9 Job #221 Whiskey & Soda was packed, shipped, and invoiced. Terms are n/30. Shipping costs paid by customer. 10 Received check from Cool Creed for a shipment made to them in November in the amount of $225,000. 10 Received the 100 rolls of denim that were ordered from Denim Inc. on December 5, 2019, as listed on purchase order No. 556. Denim Inc.'s vendor invoice No. 7423 for $300,000 was received with the goods. Terms are n/30 11 Received the supplies that were ordered from Notions Inc. on November 30, 2019, as listed on purchase order No. 549. Notions Inc.'s vendor invoice No. 257 for $20,000 was received with the goods. Terms are n/30. 16 Job #222 for K. Brand was completed, packed, shipped, and invoiced. Terms are n/30. 16 A new order from AH was received for 11,000 pairs of jeans. 18 Design work was completed for AH. AH accepted the design work and agreed to a price of $45 per pair. Assigned Job #223 to the AH order. 18 18 Requisitioned denim into Work in Process for the AH order. Requisitioned notions/supplies (indirect materials) for the AH order Paid Notions Inc electronically for their Dec 11 invoice 20 20 Job #223 for AH was completed. 20 Job #223 for A was packed shipped, and invoiced. Packing costs are a part of MOH. Other shipping costs will be paid by the customer. Terms are n/30 24 A new order for 8,000 pairs of jeans was received from Belt Buckle. 2.4 24 Design work was completed for Belt Buckle. They accepted the design work. Belt Buckle was assigned Job 224. Contract price is $45 per pair A new order for 15,000 pairs of jeans was received from Cool Creed. Denim was requisitioned into Work-in-Process for Belt Buckle lob #224 Requisitioned notions/supplies (indirect materials) for Belt Buckle Job 27 27 #224. 27 Cool Creed accepted the design work and was assigned Job #225. The contract price is $40 per pair 30 Completed one-half of the sewing direct labor on Job #224 for Belt Buckle. 30 Job #225 direct materials were requisitioned into Work-in-process. No work has been completed on the job as of month-end. 30 Paid $25,000 of principal and $1,250 of interest expense on the Note Payable to First Bank Paid $10,000 on the mortgage principal and $800 of interest expense to Commerce Bank. 30 Recorded and paid the following administrative and selling expenses Administrative & selling costs $12,750 per Apex Payroll Service's Invoice No. 18633 (includes payroll and payroll taxes). Office supplies and utilities $450. Payroll services expense $200. Job Order No. 220 Contract Price 140 Date Started W/15/19 Document No 5 JOB COST SHEET Customer Name Abernathy Fetch Quantity 5.000 Date Completed /20/19 DATE 11/15/19 DIRECT MATERIALS COST 75.000 DATE 1/18/19 DATE /18/19 APPLIED OVERHEAD COST 10,000 11/18/19 W/20/19 DIRECT LABORE COST 50.000 18,750 2.083 + Extra work 3,750 W/18/19 8/20/19 4IT TOTAL 75.000 TOTAL +70,833 TOTAL 114.167 COST SUMMARY: Direct Materials $75,000 Direct Labor $70,833 Cost Per Unit 32.00 Overhead $14.167 Total 160,000 Signature - Production Manager os Job Order No. 221 Contract Price +40 Date Started 1/18/19 Document Nos JOB COST SHEET Customer Name Whiskey & Soda Quantity 10,000 Date Completed DIRECT MATERIALS COST DATE DIRECT LABOR COST 100.000 DATE 1/2.0/19 APPLIED OVERHEAD DATE COST 1/20/19 20.000 1/18/19 150.000 1/21/19 18.750 11/21/19 3,750 TOTAL $150.000 TOTAL TOTAL OST SUMMARY: irect Materials irect Labor Cost Per Unit verhead otal Signature - Production Manager Documento Job Order No. 222 Contract Price $42 JOB COST SHEET Customer Name K Brand Quantity 2.000 Date Completed Date Started 11/25/19 DIRECT MATERIALS DATE COST 11/25/19 30,000 DIRECTLABOR COST APPLIED OVERHEAD COST 11/25/19 2.000 DATE 1/25/19 DATE 10.000 TOTAL TOTAL TOTAL $30.000 COST SUMMARY: Direct Materials Direct Labor Cost Per Unit Overhead Total Signature - Production Manage