Can someone help me with the job cost reports? I'm struggling to understand what it exactly is I'm supposed to do.

Individual Project 1 Job Costing - 25 points Due in class February 15th Blumhardt's Barbeque Grills builds customized barbeque grills. All grills goes through two production departments: Building (BLD) and Painting (PNT). The company uses a normal, job-order costing system, and overhead is applied using departmental rates. The rate for BLD is $15 per machine hour (MH) and the rate for PNT is $12.75 per direct labor hour (DLH). Company policy is to close any over- or underapplied overhead directly to Cost of Goods Sold at the end of each month. You will receive a packet containing job cost reports and copies of selected source documents for the month of February. At the beginning of the month, two jobs were already in production (#501 and #502). During February, two additional jobs were started (#503 and #504). Required: 1. Complete the company's Job Cost Reports using the information provided in the packet. 2. Calculate the following amounts for the month of February: Ending Work-in-Process balance Cost of goods manufactured Over-/underapplied overhead Cost of goods sold AFTER adjusting for any over-/underapplied overhead 3. Prepare an income statement for February. The company's income tax rate is 35% 4. Answer the following questions: Why would a business choose to use a predetermined (estimated) overhead rate instead of an actual overhead rate? A more accurate method for disposing of over-/underapplied overhead is to prorate it among work-inprocess inventories, finished goods inventories and Cost of Goods Sold. Do you think Blumhardt's Barbeque Grills is justified in using the direct write-off approach instead? Why or why not? 5. Turn in the following Completed job cost reports Answers to parts 2, 3, and 4 (must be typed) All supporting calculations (may be handwritten) 6. Turn in group evaluation (if applicable) - 1 per person. For each person in your group (including yourself), evaluate participation as follows: 4 - did at least their fair share 3 - did slightly less than their fair share 2 - did significantly less than their fair share 1 - meant to participate but never showed up 0 - who? BONUS OPPORTUNITY: 5 points for best in class; 10 points for best overall Blumhardt's Barbeque Grills: Job Cost Sheet Job #: 501 Description: Date Started: Date Req# Date Completed: 35 Grills for Bolmer's Backyard Grills Direct Material Direct Labor Dept Hrs Rate $1,250 Jan 29 BLD 120 $13.00 Jan 29 Jan 21 R1219 Amount Date 1/20/16 PNT 80 $18.00 Manufacturing Overhead Amount Date Dept Base Hrs Rate Amount $1,560 Jan 29 BLD MH 100 $15.00 $1,500 $1,440 Jan 29 PNT DLH 80 $12.75 $1,020 Completed Job Cost: $ Date Sold: Blumhardt's Barbeque Grills: Job Cost Sheet Job #: 502 Description: Date Started: 60 Grills for Hudson's Hamburgers Direct Material Date Req# Jan 25 R1220 Amount Date Completed: Direct Labor Date $2,750 Jan 29 1/25/16 Dept Hrs Rate BLD 70 $13.00 Manufacturing Overhead Amount Date $910 Jan 29 Dept Base Hrs Rate BLD MH 80 Amount $15.00 Completed Job Cost: $ Date Sold: $1,200 Blumhardt's Barbeque Grills: Job Cost Sheet Job #: 503 Date Started: Description: Date Completed: Direct Material Date Req# Amount Direct Labor Date Dept Hrs Rate $ Manufacturing Overhead Amount Date Dept Base Hrs Rate $ Amount $ Completed Job Cost: $ Date Sold: Blumhardt's Barbeque Grills: Job Cost Sheet Job #: 504 Date Started: Description: Date Completed: Direct Material Date Req# Amount $ Direct Labor Date Dept Hrs Rate Manufacturing Overhead Amount Date Dept Base Hrs $ Rate Amount $ Completed Job Cost: $ Date Sold: Selected Source Documents for February Materials Requisition Date 2/01/16 Date 2/19/16 #R1221 Description Materials Requisition Metal - for Job 502 Description Paint - for Job 503 Selected February Amount #R1227 $3,010 Amount $4,580 4822 Blumhardt's Barbeque Grills PAY TO THE ORDER OF DATE Rao's Repairs Inc PAY TO THE ORDER OF XYZ Bank 2/2/16 DATE Blumhardt's Barbeque Grills 2/22/2016 3,500 $ Westar Energy XYZ Bank MEMO Factory MEMO Maintenance 4823 $ 8,000 Bi-Weekly Payroll Summary Pay Period Ending: 2/26/2016 Bi-Weekly Payroll Summary Pay Period Ending: 2/12/2016 Dept BLD: Job #503 350 hrs @ $13.00/hr 60 Dept BLD: Job #501 180Job #504 hrs @ $13.00/hrhrs @ $13.00/hr Dept PNT: Job #502 280 hrs @ $18.00/hr Idle time $86 Idle time $137 Plant supervisor $2,500 Plant supervisor $2,500 Administrative salaries $1,270 Administrative salaries $1,270 Yang Xu, CPA 4824 Blumhardt's Barbeque Grills Job Machine Hours 2/28/16 DATE #501 190 BLD Machine Hour Summary #502 Ending: 2/26/16 160 PAY TO THE Job # Description ConklinPeriod Management Property 5,700 $ ORDER OF Production Order #503 200 503 120 Grills for Krattli's Koolers INC Job Machine Hours XYZ Bank Job # Description #503 220 504 15 Grills for Davis' Dawgs Yang Xu, CPA MEMO Factory Rent: $3,000 #504 20 Admin Office Rent: $2,700 Requisition LLC Materials #R1224 Materials Requisition #R1222 Date Inventory Move Authorization Amount Description 2/5/16 Metal#- for Job Move To $6,450 503 Date Job 2/24/16 503 Date 2/15/16 Finished Goods Materials Requisition #R1223 Materials Requisition #R1228 Date Description Amount Date Description Amount 2/8/16 Paint - for Job 502 $1,090 2/26/1 Metal - For Job 504 $850 6 2/28/16 Recorded depreciation on manufacturing equipment $2,500 2/16/16 2/16/16 501 502 Finished Goods Total Finished Goods Description Various Production Supplies Amount $5,366 Invoice 152 2/17/2016 Sold To: Bolmer's Backyard Grills Description Job #501: 35 Barbeque Grills Total Total Amt. $28,000 $28,000 Materials Requisition Date Invoice 153 2/18/16 2/27/2016 Sold To: Hudson's Hamburgers Inventory Move Authorization Description Job #502: 60 Grills To Date Job # Move #R1225 Lawrence, KS 785.555.1234 Description Amount Metal - for Job 503 $3,930 Blumhardt's Barbeque Grills Lawrence, KS 785.555.1234 Materials Requisition Blumhardt's Barbeque Grills BLD Machine Hour Summary Period Ending: 2/12/2016 Yang Xu, CPA Factory: $6,000 Admin: $2,000 Production Order Date 2/5/16 Date 2/22/16 Job #502 140 hrs @ $13.00/hr Dept PNT: Job @ $13.00/hr Job #503 370 hrs#502 120 hrs @ $18.00/hr Date Job #503 240 hrs @ $18.00/hr 2/17/16 Job #501 240 Job @ $18.00/hr @ $18.00/hr hrs #504 40 hrs Source Documents for Total Amt. $48,000 $48,000 #R1226 Description Various Production Supplies Amount $1,000 Ending WIP COGM Overhead Adjusted COGS Net Income Common Questions $3,160 $82,820 $3,009 underapplied $47,829 $13,605 Acceptable Answers / Hints How do departmental rates work? This was demonstrated in class with problem 4-31. Refer to you notes from that day. What does \"Base\" mean (on job cost sheet)? This is the allocation base that is used to apply overhead. How do we calculate COGM? Schedule is provided on page 43. How do we calculate adjusted COGS? It consists of the regular COGS and the adjustment to COGS. Regular COGS is the cost of the items you sold. The adjustment is required to deal with over or under allocated overhead. How do we find beginning WIP? Use the job cost sheets to determine the beginning balance in WIP How do we find beginning FG There are no jobs in finished goods to start. I don't know how to start this project. Start by using the source documents to record your transactions. The best approach is to set up T accounts and use the source documents to fill in the T-Accounts Will all source documents impact the job cost sheet? No, remember the job cost sheet is only used when a transaction influences a job being produced. Ending WIP COGM Overhead Adjusted COGS Net Income Common Questions $3,160 $82,820 $3,009 underapplied $47,829 $13,605 Acceptable Answers / Hints How do departmental rates work? This was demonstrated in class with problem 4-31. Refer to you notes from that day. What does \"Base\" mean (on job cost sheet)? This is the allocation base that is used to apply overhead. How do we calculate COGM? Schedule is provided on page 43. How do we calculate adjusted COGS? It consists of the regular COGS and the adjustment to COGS. Regular COGS is the cost of the items you sold. The adjustment is required to deal with over or under allocated overhead. How do we find beginning WIP? Use the job cost sheets to determine the beginning balance in WIP How do we find beginning FG There are no jobs in finished goods to start. I don't know how to start this project. Start by using the source documents to record your transactions. The best approach is to set up T accounts and use the source documents to fill in the T-Accounts Will all source documents impact the job cost sheet? No, remember the job cost sheet is only used when a transaction influences a job being produced