CAN YOU PLEASE HELP WITH #9?

ANSWERS 1-8

Using a spreadsheet and based on the information provided in the next section, complete the following requirements A: Determine the predetermined overhead rate. 40000/80000=$0.50 2. Determine the total number of frames to account for. 75,000 Frames to account for 3. Prepare an equivalent unit's schedule. The schedule should follow the format below; you may add additional information if you would like. Equivalent Units (Actual) Direct Materials Direct Material Conversion Whole Units Glass Costs Wood XxX Beginning Start/Completed Completed/Transferred Out Ending Xxx xXx xXX 4. Determine the total cost for the wood and the unit amount for the wood for one frame. S. Determine the total cost for the glass and the unit cost for each pane of glass. 6. Determine the total conversion cost and the conversion cost per frame. Determine the total equivalent cost per frame. Prepare a Cost of Production report. This report should show all costs transferred into Work-in- Process and the costs transferred to Finished Goods. Determine the amounts for the following. 8. This process uses FIFO costing. 9. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Unadjusted Cost of Goods Sold Over/Under Applied Manufacturing Overhead Gross Margin Income from Operations Net Income d) e) f) g) 10. Prepare the necessary Journal Entries related to the manufacturing cycle for this accounting period. Prepare journal entries for the accounting period. Use the account numbers in the chart of accounts, below, instead of the accounts names when writing the journal entries. Manufacturing Process Information Mr. Frank, the CEO of Frank's Frames, Inc. has begun a small manufacturing process that will manufacture picture frames and then sell the frames to merchandising companies. The manufacturing process starts with the construction of the wood molding, inspected and then glass will be installed as a final step in the process. Once the frames are completed they are then transferred to finished goods. This is a process cost system and the company elects to use the FIFO method of accounting for product costs. Direct material-wood is added 100% at the beginning of the process. Direct material glass is added 100% as the last step in the manufacturing process. At the beginning of the accounting period, Mr. Frank estimates that production will be 80,000 frames during the year. Estimated factory overhead is $40,000. This information is to be used to determine the application rate for the manufacturing overhead Estimated and actual direct labor costs totaled $29,100. Actual factory overhead costs totaled $36,000. The following information is available concerning direct materials. Direct Materials-Wood 0 board feet Beginning inventory Purchase of wood 240,000 board feet @ $1.60 a foot The company starts 75,000 frames. Each frame contains three board feet of wood molding Direct Material-Glass 0 panes of glass Beginning inventory Purchases of glass 80,000 panes of glass @ $.25 per pane Used 72,000 panes this period The Work-in-Process account has the following information: Ending work in process inventory is 100% complete as to wood molding 25% complete as to conversion costs 0% complete as to glass panes The Finished Goods account has the following Information: The finished goods inventory at January 1, 2018 had a balance of 20,000 frames at a cost of $140,000 and on December 31, 2018 had an ending balance of 10,000 frames Selling and Administrative Costs totaled $100,000; The selling price of the frame is $10.00. tax rate is 30% 1. 40000/80000 0.50 per frame 2. The total number of frames to account are: Opening WIP Started Frames to Account for 0 75000 75000 3. Equivalent units schedule 3. Equivalent Units Schedule Whole Units DM Wood DM Glass Conversion Costs Beginning Start/Completed Completed/ T.O Ending Equivalent Units 72000 72000 750 72750 4. Total cost of wood 75000 3 1.6 $360,000 Cost per frame $360000/75000 $4.8 per frame 5. Total cost of glass 72000 $0.25 $18000 Cost per frame. $18000/72000 $0.25 6. Total conversion cost Direct laborFOH applied 29100 (72750*0.50) 65475 Conversion cost per frame 65475/72750 $0.90 per frame 7. Total equivalent cost per frame cost of (wood+glassconversion cost) 4.8+0.25+0.90 $5.95 per frame 8. Prepare a cost of production report. This report should show all costs transferred into Work in Process and the cost transferred to finished goods. This process uses FIFO costing. Whole Units DM Wood DM Glass C. Costs Total Beginning Started & Completed Complete/Transfer Out Ending Equivalent Units Costs Incurred Cost per Equivalent Unit Cost of Opening WIP Cost of S&C Cost of Transferred Out Cost of Closing WIP 72000 72000 72 72000 72000 75000 72000 727 360,000.00 $18,000.00 $65,47 $4.80 345600 428400 428400 5075 18000 14400 675