Based on the information given and the answers for 1-7 , please answer #8 and #9 and show the formulas and calculations.
Based on the information given and the answers for 1-7 , please answer #8 and #9 and show the formulas and calculations.
Glass Company makes glass orders based on the customer specifications, so the company uses job costing to track costs. 1. The company uses direct labor hours as the cost driver for manufacturing overhead application. The company estimated the following manufacturing overhead costs for the yea $787,500 The company estimated the following usage of direct-labor hours for the year 225,000 2. Beginning Work-in-process, March 1 (Job 57) $80,000 3. Beginning Finished Goods, March 1 (Job 55) $150,000 2. Labor Information for March: Direct-labor hours: Job 57 Job 58 Job 59 Labor costs in factory: Direct-labor wages Indirect-labor wages Supervisory salaries 7,000 8,000 5,000 $420,000 $25,000 $30,000 $20,000 $220,000 3. Material Information for March: Raw Materials, Inventory, March 1 Purchase or raw material Direct materials requisitioned: Job 57 Job 58 Job 59 $80,000 $75,000 $51,000 4. Other costs incurred in March: Factory Utilities Sales offices Utilities Administrative offices Utilities Factory equipment repair and maintenance costs Depreciation on factory equipment Manufacturing supplies purchased and used $7,000 $4,000 $3,000 $6,000 $2,000 $5,000 5. During March the following jobs were completed: Job 57 Job 59 6. During March the following jobs were sold for the following amounts: Job 55 Job 59 $200,000 $250,000 Required: You need to use cell references to provide answers and calculations. There are 9 questions in Part 1. 1. Develop the predetermined overhead rate. $3.50 Estimated Manufacturing Cost/ Estimated Direct Labor Hours 2. Complete the job cost sheets provided below for the month of March: $21 Labor Hourly Rate Per Direct Labor Hour Job 57 Job 58 Job 59 $80,000 Beginning Balance Current costs: Direct materials Direct Labor Applied overhead Total $80,000 $147,000 $24,500 $331,500 $75,000 168,000 $28,000 $271,000 51,000 105,000 Hint: You need to calculate the hourly rate and then compute direct labor cost per job. $17,500 $173,500 3. Determine the ending Work-In-Process Inventory at the end of March and provide the Job number of the job(s) still in Work-in-Process at the end of March and the determine total cost of ending work in process for March. Since job 57 & 59 are completed, only job 58 is in process at end. Cost of job 58 is $271,000 4. Determine the ending Finished Goods for March and provide the Job number(s) of the job(s) in Finished Goods at the end of March and determine the total cost of ending finished goods for March. Job 55 & Job 59 are sold, so only Job 57 is finished Cost of job 57 is $331,500 5. Determine the Cost of Goods Sold for March and provide the Job number of the Job(s) in Cost of Goods Sold for March and determine the total cost of goods sold for March. Job Number 55 & 59 Cost of Job 55 Cost of Job 59 Total Cost of Goods Sold $150,000 $173,500 $323,500 Ending Finished Goods Inventory - Job 57 Cost of Ending Finished Goods Inventory $331,500 6. Prepare a statement of cost of goods manufactured for March below. Use Manufacturing Overhead applied in your statement. You need to prepare in good form. Please see Exhibit 18.6. Glass Company Statement of Cost of Goods Manufactured For Month ending March 31, 20XX Direct Material Used Direct Labor Used Overhead Applied Total Manufacturing Cost Beginning Work in Process $206,000 $420,000 $70,000.00 $696,000 $80,000 $776,000 ($271,000) $505,000 Less: Ending Work in Process Cost of Goods Manufactured 7. Prepare an Income Statement for March below. The company does not close the over or underapplied overhead until the end of the year, so no adjustment is needed to Cost of Goods Sold. You need to prepare in good form. Please see Exhibit 18.6. Glass Company Income Statement For Month ending March 31, 20XX $450,000 ($323,500) $126,500 Sales Revenue Less: Cost of Goods Sold Gross Margin Less: Selling and Admin Expenses Sales Office Utilities Admin Office Salaries Net Income $4,000 $3,000 non -7000 $119,500 8. Determine the underapplied or overapplied manufacturing for March. 9. Prepare a Pie chart below showing the three product costs that were added to the jobs in March
