Give me an example of Sheds, Inc. designs and builds sheds and outbuildings for individual customers.

The company uses a job cost system and treats each customer's order as a separate job.

At the beginning of June the company had the following raw material inventory: $$300$

At the beginning of June the company had the following work$-$in$-$process inventories:

Job $21$ $$8,000$

Job $25$ $$5,000$

During June, the following activities took place:

$1.$ Started jobs $26$ and $27.$

$2.$ Purchased raw materials in June: $$8,000$

Requisitioned$($or used$)$ the following raw materials to the specific jobs:

Job $21$ $$2,000$

Job $25$ $$1,000$

Job $26$ $$2,300$

Job $27$ $$1,600$

$3.$ Incurred June manufacturing payroll:

Direct Labor

Job $21$ $$1,200$

Job $25$ $$900$

Job $26$ $$1,500$

Job $27$ $$1,300$

Indirect labor $$200$

$4.$ Incurred additional manufacturing overhead costs for June:

Production equipment rent $$500$

Manufacturing supplies purchased and used $$100$

Factory utilities $$300$

$5.$ Applied manufacturing overhead using a predetermined rate based on predicted annual overhead

and predicted annual direct material cost as follows:

Predicted Annual Overhead $$12,000$

Predicted Annual Direct Material cost $$80,000$

$6.$ Completed jobs $21$ and $27.$

$7.$ Customer for Job $27$ picked up completed job and was billed the following:

Job $275,000$

$8.$ The company had the following monthly period costs that they incurred:

Sales commissions $$400$

Administrative salaries $$500$

Required: You need to use cell references to provide answers and calculations.

$1.$ Develop the predetermined overhead rate.

$2.$ Complete the job cost sheets provided below for the month of June:

Job $21$ Job $25$ Job $26$ Job $27$

Beginning Balance

Current costs:

Direct materials

Direct Labor

Applied overhead

Total

$3.$ Determine the ending Work$-$In$-$Process Inventory at the end of June and provide the Job number of the job$($s$)$ still in Work$-$in$-$Process at the end of June and the determine total cost of ending work in process for June.

$4.$ Determine the ending Finished Goods for June and provide the Job number$($s$)$ of the job$($s$)$ in Finished Goods at the end of June and determine the total cost of ending finished goods for June.

$5.$ Determine the Cost of Goods Sold for June and provide the Job number of the Job$($s$)$ in Cost of Goods Sold for June and determine the total cost of goods sold for June.

$6.$ Prepare a statement of cost of goods manufactured for June below. Use Manufacturing Overhead applied in your statement.

Shed Inc.

Statement of Cost of Goods Manufactured

For Month ending June $30,20$XX

$7.$ Prepare an Income Statement for June below. The company does not close the over or underapplied overhead until the end of the year, so no adjustment is needed to Cost of Goods Sold.

Shed Inc.

Income Statement

For Month ending June $30,20$XX

$8.$ Determine the underapplied or overapplied manufacturing for June.

$9.$ Develop a Column chart using the Excel Chart feature below showing the three product costs that were put into the jobs in June.