From this information, compute the following: a) The work in process inventory at November 30: $ b) The finished goods inventory at November 30: $ c) The cost of goods sold during December 31: $ The work in process at December 31: $ e) The finishing goods inventory at December 31: $ 3 Job Order costing 20 points Blow Off takes special orders to manufacture race fast Cars for high end customers. Complete the job cost sheets for Blow Off for June based on the following information. Prepare journal entries to record the transactions as well as post to the job cost sheets. a. Purchased raw materials costing S821,000 paid $401.000 in and $420,00 was on credit. b. Total Materials requisitions amounted to $745,000.00: the percentage allocated of the total cost is as follows" Job Sesay, $22%; Job Koroma, 25%; Job Manasary, 23%; Job Jalloh 20%; indirect materials 10%. c. Timecard used to charge labor to jobs account for the following hours with a chargeable hourly rate of $80.00 per hour: The total hours charged to each job are as follows: Job Sesay, 1700 hours; Job Koroma, 1,530 hours; Job Manasary 2,400, Job Jalloh 2,320, indirect labor is 1450. d. The company incurred the following additional overhead costs: depreciation of factory building, $500,000; depreciation of factory equipment, $190,000; expired factory insurance, $365,000; utilities and maintenance cost of $271,000 were paid in cash. e. Applied overhead to all four jobs. The predetermined overhead rate is 150% of labor cost. f. Transferred jobs Koroma and Jalloh to Finished Goods Inventory. g. Sold job Koroma and for $2,500,000 for cash. h. Closed the under-or over-applied overhead account balance. Job Cost Sheets Sesay Koroma Manasary Makeni Total For the current month Direct materials Direct labor Applied overhead Total costs 1. Activity Base Costing (ABC) 25 points Yanguba has two produce lines for it well marketed Ice cold Fruit drink: 20 Ounces and 40 ounces. The company assigns $700,000.00 in manufacturing overhead costs to two departments, Mixing, Bottling and Packing Additional information about each product line is shown below; 20 ounces 40 ounces Number of units Produced per month 220,000 80,000 Number of Units Sold per month 150,000 60,000 Direct Material cost per unit 5 8 Direct Labor Cost per hour 15 15 Direct Labor hours per unit 0.5 0.7 The following cost pool and cost driver was used Amount Total Drive Cost Pool Allocated Cost Driver Volume Mixing Department 300,000 Machine hours 1750 MH Bottling Department 240,000 Bottle requisitions 144,000 Packing Department 160,000 Direct Labor hours 5,450 DLH Total Allocation 700,000 The amount of driver activity corresponding to cach product line is as follow Cost Driver 20 ounces 40 ounces Machine Hours 1,050MH 700 MH Bottle Requisitions 93,600 50,400 Direct Labor hours 3,161 2,289 (a) Allocate manufacturing overhead costs to each product line using Bottle requisitions as a single cost driver. b) Allocate manufacturing overhead costs to each product line using the ABC approach. (c) Compute the total manufacturing costs assigned to each product line when using ABC and traditional method. d) As a manager advice the CEO of the company what is the most cost effective method that should be used, Give some key example. (Hint: keep your answer short, sweet and simple)
