At the end of 1987 the Wetden Publishing Company was working with potential authors on a single new project which is expected to be completed in 1988. Wetden make us of the job costing method of accounting for its projects. The job cost sheet for the current project appears as follows on Dec 31,1987: Job No. 121 Author(s) Icerman Date Started 1987 Date Completed.. Date Direct Direct Labor Overhead Total Materials Hours Cost Rate Amount 1987 $5,000 100 $1,000 $2 per $200 $6,200 direct labor- hour During 1988 (1) two additional projects were begun (jobs 122 and 123) for authors Black and Heck, respectively; (2) jobs 121 and 122 were finished; and (3) job 121 was sold. The following transactions took place during 1988: $60,000 $ 25,000 20,000 6,000 51,000 Purchase of Raw Materials Usage of Direct Materials: Job 121 Job 122 Job 123 Direct Labor: Job 121 (1,500 hr) Job 122 (1,450 hr) Job 123 (220 hr) Factory Overhead Incurred: Indirect labor Supplies Rent 15,000 15,000 2,000 32,000 3,000 1,500 1,000 5,500 Additional information a. Projects are priced to sell at 40% above their cost. b. Overhead is assigned to jobs using a predetermined overhead rate, based upon the number of direct labor-hours worked. Required: - Job cost sheets for the three jobs (3 points) Cost of goods completed (2 points) Cost of goods sold (1 point) Revenue and gross margin (2 points) - Ending work-in-process balance (1 point) Ending finished goods inventory balance (1 point) Magic Processing Company uses a weighted average process cost system and manufacturers a single product-a premium rug shampoo and cleaner. The manufacturing activity for the month of November has just been completed. A partially completed production cost report for the month of November for the Mixing and Cooking Department is shown below. All scraps are abnormal. MAGIC PROCESSING COMPANY Production Cost Report For the Month Ended November 30 Quantities Physical units 10,000 160,000 170,000 Units to be accounted for WIP, Nov 1 (all materials, 60% conversion costs) Started in production Total units Units accounted for Transferred out WIP, Nov 30 (40% materials, 30% conversion costs) Scrap (all materials, 50% conversion costs) Total units accounted for 120,000 40,000 10,000 170.000 Costs Materials Conversion costs Current+Beginning costs $2,196,000 $23,000 Required: (use average costing method) Diagram (2 points) Equivalent units (2 points) Unit cost (2 points) . Cost of goods completed (2 points) Cost of ending WIP (1 points) Loss from abnormal spoilage (1 point) At the end of 1987 the Wetden Publishing Company was working with potential authors on a single new project which is expected to be completed in 1988. Wetden make us of the job costing method of accounting for its projects. The job cost sheet for the current project appears as follows on Dec 31,1987: Job No. 121 Author(s) Icerman Date Started 1987 Date Completed.. Date Direct Direct Labor Overhead Total Materials Hours Cost Rate Amount 1987 $5,000 100 $1,000 $2 per $200 $6,200 direct labor- hour During 1988 (1) two additional projects were begun (jobs 122 and 123) for authors Black and Heck, respectively; (2) jobs 121 and 122 were finished; and (3) job 121 was sold. The following transactions took place during 1988: $60,000 $ 25,000 20,000 6,000 51,000 Purchase of Raw Materials Usage of Direct Materials: Job 121 Job 122 Job 123 Direct Labor: Job 121 (1,500 hr) Job 122 (1,450 hr) Job 123 (220 hr) Factory Overhead Incurred: Indirect labor Supplies Rent 15,000 15,000 2,000 32,000 3,000 1,500 1,000 5,500 Additional information a. Projects are priced to sell at 40% above their cost. b. Overhead is assigned to jobs using a predetermined overhead rate, based upon the number of direct labor-hours worked. Required: - Job cost sheets for the three jobs (3 points) Cost of goods completed (2 points) Cost of goods sold (1 point) Revenue and gross margin (2 points) - Ending work-in-process balance (1 point) Ending finished goods inventory balance (1 point) Magic Processing Company uses a weighted average process cost system and manufacturers a single product-a premium rug shampoo and cleaner. The manufacturing activity for the month of November has just been completed. A partially completed production cost report for the month of November for the Mixing and Cooking Department is shown below. All scraps are abnormal. MAGIC PROCESSING COMPANY Production Cost Report For the Month Ended November 30 Quantities Physical units 10,000 160,000 170,000 Units to be accounted for WIP, Nov 1 (all materials, 60% conversion costs) Started in production Total units Units accounted for Transferred out WIP, Nov 30 (40% materials, 30% conversion costs) Scrap (all materials, 50% conversion costs) Total units accounted for 120,000 40,000 10,000 170.000 Costs Materials Conversion costs Current+Beginning costs $2,196,000 $23,000 Required: (use average costing method) Diagram (2 points) Equivalent units (2 points) Unit cost (2 points) . Cost of goods completed (2 points) Cost of ending WIP (1 points) Loss from abnormal spoilage (1 point)