Download the Assignment.

Download the Job Cost Sheets and T$-$accounts.

Follow the video solution included below as we go through the journal entries.

Submit your manufacturing overhead t$-$account.

Please note the moh t$-$account is in the video $-$ double$-$check yours with the video before submitting

Managerial Accounting

CHICKEN POT PIE Project $$ Job order costing

Let$$s get started: We are going to make two batches of Chicken Pot Pies.

As a factory, we

ANTICIPATED OR ESTIMATED MANUFACTURING OVERHEAD at $$2,000,000$

Our cost driver is determined to be DIRECT LABOR

We have estimated direct labor hours of $100,000$

Therefore, our

PREDETERMINED OVERHEAD RATE is

$ $/=$ $ PER DIRECT LABOR HOUR

Therefore, the STANDARD COST PER POT PIE CAN BE COMPUTED AT:

DIR. MAT. $$0\mathrm{.}25$

DIR. LABOR

$\mathrm{.}02$ HOURS @ $$10$ PER HOUR $ $\mathrm{.}20$

MOH

$\mathrm{.}02$ HOURS @ $\_\_\_\_$ PER HOUR $$.$

STANDARD COST PER PIE $$\_\_\_\_\_\_\_$

You MAY WANT the following T Accounts

T $$ Accounts

NEED! Manufacturing Overhead$*$

Wages$/$Accounts Payable

Work in Process

Selling, General & Administrative Expense $($SG&$)$

Raw Material Inventory $$ Beginning Balance $$40,000$

Supply Inventory $$ Beginning Balance $$5,000$

Accumulated Depreciation

Finished Goods

Cost of Goods Sold

Accounts Receivable

Sales Revenue

$*$At the conclusion of the exercise:

Submit the Manufacturing overhead in the appropriate Assignment box.

$0.$ I am predetermined overhead rate of $\_\_\_\_\_\_\_.$ The total estimate amount of manufacturing overhead for the year $$2,000,000.$ It is estimated $100,000$ direct labor hours will be worked during the year.

$1.$I am the production foreman. I get to work and clock in$.$ I work the entire day and supervise everyone's activities. I earn $$100$ for the day with fringe benefits.

$2.$ I am the chicken for the chicken pot pies.

$500$ pounds is removed from the freezer and taken to the production area. At standard or normal cost, my value is $$2500.$ The batch will produce $10,000$ very fancy pot pies.

$3.$ I am the cook, I take the chicken and add it to the batch of water, carrots, celery, potatoes and flour. I spend three hours cooking the food. I earn $$10$ an hour with fringes.

$4.$ I am the USDA inspector. When I walk in$,$ everyone sits down. $$4,000$ in wages are incurred by cooks while I walk around.

$5.$ I am the electric bill for the plant. My total is $$5,000$

$6.$ I am the tax bill for the plant. My bill is $$7000$

$7.$I am the hazardous waste disposal bill. My total is $$800.$

$8.$ I am the Marketing Director, I earn $$260,000$ a year working part$-$time or $$2600$ a day $-$ We will record today's cost only.

$9.$ I am the quality control supervisor. I earn $$67,600$ a year or $$260$ a day. We will record today's cost only.

$10.$ am the heating bill for the fancy office building housing the president. My total is $$30,000$ for the month. We will record the cost for the month.

$11.$ I am glue brought over to the packaging area for sealing the boxes of pot pies $-$ value $$10$

$12.$ I am the specialty cook called in to work one hour of overtime to add a special touch to the pot pie. My hourly wage is $$10,$ but my overtime pay is a total of $$15$ per hour

$13.$ I am the depreciation on the oven used to cook the pies $$5,000.$

$14.$ I am the total number of other labor hours for the other cooks spent on the batch of pot pies $196$ hours at $$10$ per hour.

$15.$ I AM THE OVERHEAD THAT NEEDS TO BE APPLIED.

$16.$ I am the $10,000$ finished pot pie. I am moved to the completed pot pie freezer.

WE START A NEW BATCH

$17$ a$.$ I am the raw materials used for the new batch: $2,250$ pounds at $$5$ per pound is removed from the Raw Material Inventory & Transferred to WIP

$17$ b$.$ I am $900$ hours worked on the new batch $-$ $$10$ per hour is the wage rate

$17$ c$.$ I am the manufacturing overhead applied to this job with $900$ hours worked, and $2,250$ of materials used.

$18.$ I am an additional $45,000$ pot pies transferred to the finished pot pie freezer from this batch $$ You will need to record the completion of the pot pies.

$19.$ Pies costing $$45,000$ are sold on account at $200\%$ of cost $($Two Entries$)$

$20.$ I am the end of the month, and it is time to deal with the under$/$over applied inventory