Comprehensive Project 1 v2
Using Excel
Boyd Corporation is a manufacturer that uses job
order costing. On January 1, 2024, the company's
inventory balances were as follows:
Raw Materials Inventory: $63,000
Work-in-Process Inventor: $41.000
Finished Goods Inventory: $58,000
the current year, 2024, the company's
predetermined overhead rate per direct labor-hour
was based on a cost formula that estimated
$806,000 of total manufacturing overhead for an
estimated activity level of 62,000 direct labor-
hours.
The company sold 500 units in 2024. use the information given to calculate the following for 2024.
8. Use the information provided, the high low method and the contribution margin approach to prepare a contribution format income statement.
9. Use the contribution margin approach to compute the company's annual breakeven point in units.
10. Use the contribution margin ratio approach to compute the breakeven point in sales dollars.
11. Use the contribution margin approach to compute the annual sales level (in units) required to earn a target operating income of $655,000.
PLEASE USE CELL REFERENCES IF POSSIBLE :)
1 Comprehensive Project 1 V2 2 Using Excel B Boyd Corporation is a manufacturer that uses job-order costing. On January 1, 4 2024 the company's inventory balances were as follows: 5 Raw Materials Inventory $63,000 Work-in-Process Inventory $41,000 Finished Goods Inventory $58,000 On 6 7 B 9 the current year, 2024, the company's predetermined overhead rate per direct labor-hour was based on a cost formula that estimated $806,000 of total manufacturing overhead for an estimated activity level of 62,000 direct 10 labor-hours The following transactions were recorded for the year: a Raw materials were purchased on account, $558,000. b Raw materials used in production, $528,000. All of the raw materials were used as direct materials. The following costs were accrued for employee services: direct labor, $648,000; indirect labor, $198,000; selling and administrative salaries, $288,000. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing). $415,000. e incurred various manufacturing overhead costs (e.g., rent, insurance, and utilities), $548,000. f Manufacturing overhead cost was applied to production. The company actually worked 44,000 direct labor- hours on all jobs during the year. g Jobs costing $1,728,000 to manufacture according to their job cost sheets were completed during the year. Jobs were sold on account to customers during the year for a total of $2,848,000. The jobs cost $1,738,000 to manufacture according to their job cost sheets. h Requirement 1 Computation of Predetermined Overhead allocation rate - Total estimated OH costs / Total estimated DLHS Predetermined overhead allocation rate = $806,000 / 62,000 DLHS = $13 per DLHS Date a) Requirement 2 Account / Explanation Raw Materials Inventory Accounts Payable Debit Credit $ 558,000 $ 558,000 b) $ 528,000 Work-in-Process Inventory Raw Materials Inventory $ 528,000 c) Work-in-Process Inventory Manufacturing Overhead Selling and administrative expenses Wages Payable $ 648,000 $ 198,000 $ 288,000 $ 1,134,000 d) Selling and administrative expenses Accounts Payable $ 415,000 $ 415,000 e) $ 548,000 Manufacturing Overhead Accounts Payable $ 548,000 f) Work-in-Process Inventory (44,000 DLHs * $13) $ 572,000 Manufacturing Overhead $ 572,000 g) $ 1,728,000 Finished Goods Inventory Work-in-Process Inventory $ 1,728,000 h) $ 2,848,000 Accounts Receivable Sales Revenue $ 2,848,000 $ 1,738,000 Cost of Goods Sold Finished Goods Inventory $ 1,738,000 Accounts Receivable $ 1.728,000 Requirement 3 T-accounts Raw Materials Inventory Beg. Bal. $ 63,000 $ 558,000 $ 528,000 b. h. End. Bal. $1,728,000 End. Bal.IS 93,000 Work in Process Inventory Beg. Bal. 41,000 b. $ 528,000 $ 1,728,0008 c. $ 648,000 f. $ 572,000 Finished Goods Inventory Beg. Bal. $ 58,000 $ 1,728,000 $ 1,738,000 n. End. Bal. $ 61,000 End. Bal. $ 48,000 Wages Payable $ 1,134,000 Accounts Payable $ 558,000 a. $ 415,000 d. $ 548,000 e. $ 1,521,000 End. Bal. End. Bal. $ 1,134,000 Sales Revenue $ 2,848,000 h. C. Manufacturing Overhead $ 198,000 $ 572,000. $ 548,000 $ 174,000 e. End. Bal. $ 2,848,000 End. Bal. $ h. 1. Cost of Goods Sold S 1,738,000 $ 174,000 Selling and administrative expenses $ 288,000 $ 415,000 d. End. Bal. 1,912,000 End. Bal. 703,000 Credit Date 1) Requirement 4 Account / Explanation Cost of Goods Sold Manufacturing Overhead $ Debit 174,000 $ 174,000 Requirement 5 Boyd Corporation Schedule of Cost of Goods Manufactured For the Year 2024 Beginning Work in Process inventory $ 41,000 Direct Materials used in production $ 528,000 Direct Labor $ 648,000 Manufacturing Overhead $ 572,000 Total Manufacturing Costs $ 1,748,000 Total cost of work in process $ 1,789,000 Less: Ending Work in Process Inventory $ 61,000 Cost of Goods Manufactured $ 1,728,000 Requirement 6 Boyd Corporation Schedule of Cost of Goods Sold For the Year 2024 Beginning finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Add: Underapplied overhead Adjusted cost of goods sold $ 58,000 $ 1,728,000 $ 1,786,000 $ 48,000 $ 1,738,000 $ 174,000 $ 1,912,000 Requirement 7 Boyd Corporation Income Statement For the Year 2024 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $ 2,848,000 $ 1,912,000 $ 936,000 $ 703,000 $ 233,000 Requirement 8 Use the information provided below, the high low method and the contribution margin approach to prepare a contribution format income statement Use your mixed cost formulas to create your contribution format statement Reference the DATA cell(s) as provided to complete your statement below. Format as numbers. Round to 2 decimal places where appropriate Boyd Corporation Income Statement For the Year 2023 Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income 2,280,000 1,560,000 720,000 597,000 123,000 Boyd sold 400 units in 2023 High Low Method Cost of Goods Sold Step 1 - Variable cost per unit Step 2 - Fixed Cost - Step 3 - Mixed Cost Formula (STATE the ACTUAL formula in the blue box provided) Selling & Administrative Costs Step 1 - Variable cost per unit Step 2 - Fixed Cost Step 3 - Mixed Cost Formula (STATE the ACTUAL formula in the blue box provided) Contribution Format Per Unit DATA (refer to Requirement 8) Description Unit Sales for 2024 500 Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income 0 Breakeven Target Profit 655,000 Requirement 9 Use the contribution margin approach to compute the company's annual breakeven in units. Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. Breakeven in Units Requirement 10 Use the contribution margin ratio approach to compute the breakeven point in sales dollars. Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. Format the ratio as a percent, breakeven in dollars as accounting number format in whole dollars. Contribution margin ratio Breakeven in Dollars Requirement 11 Use the contribution margin approach to compute the annual sales level (in units) required to earn a target operating income of $655,000 Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. Use the Excel ROUNDUP function to obtain whole units to reach the target operating income. Target sales level (in units)
