Glass Company makes glass orders based on the customer specifications, so the company uses job costing to track costs.

1. The company uses direct labor hours as the cost driver for manufacturing overhead application. The company estimated the following manufacturing overhead costs for the year: $787,500

The company estimated the following usage of direct-labor hours for the year: $225,000

Beginning Work-in-process, March 1 (Job 57) $80,000

Beginning Finished Goods, March 1 (Job 55) $150,000

2. Labor Information for March:
   1. Direct-labor hours:
      1. Job 57: 7,000
      2. Job 58: 8,000
      3. Job 59: 5,000
   2. Labor cost in factory:
      1. Direct labor wages: $420,000
      2. Indirect labor wages: $25,000
      3. Supervisory salaries: $30,000
3. Material Information for March:
   1. Raw Materials, Inventory, March 1: $20,000
   2. Purchase or raw material $220,000

Direct materials requisitioned:

3. 1. Job 57: 80,000
   2. Job 58: 75,000
   3. Job 59: 51,000
4. Other costs incurred in March:

Factory Utilities $7,000

Sales offices Utilities $4,000

Administrative offices Utilities $3,000

Factory equipment repair and maintenance costs $6,000

Depreciation on factory equipment $2,000

Manufacturing supplies purchased and used $5,000

5. During March the following jobs were completed :

Job 57

Job 58

6. During March the following jobs were sold for the following amounts:

Job 55: $200,000

Job 59: $250,000

Required: You need to use cell references to provide answers and calculations. There are 9 questions in Part 1.

1. Develop the predetermined overhead rate.
2. Complete the job cost sheets provided below for the month of March:

Job 57 Job 58 Job 59

Beginning Balance

Current Cost

Direct materials

Direct Labor

Applied overhead

Total:

Hint: You need to calculate the hourly rate and then compute direct labor cost per job.

3. Determine the ending Work-In-Process Inventory at the end of March and provide the Job number of the job(s) still in Work-in-Process at the end of March and the determine total cost of ending work in process for March.
4. Determine the ending Finished Goods for March and provide the Job number(s) of the job(s) in Finished Goods at the end of March and determine the total cost of ending finished goods for March.
5. Determine the Cost of Goods Sold for March and provide the Job number of the Job(s) in Cost of Goods Sold for March and determine the total cost of goods sold for March.
6. Prepare a statement of cost of goods manufactured for March below. Use Manufacturing Overhead applied in your statement. You need to prepare in good form. Please see Exhibit 18.6

Glass Company

Statement of Cost of Goods Manufactured

For Month ending March 31, 20XX

7. Prepare an Income Statement for March 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

You need to prepare in good form. Please see Exhibit 18.6.

Glass Company

Statement of Cost of Goods Manufactured

For Month ending March 31, 20XX

8. Prepare a Pie chart below showing the three product costs that were added to the jobs in March.