Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Glass Company makes glass orders based on the customer specifications, so the company uses job costing to track costs.
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: $340,000
The company estimated the following usage of direct-labor hours for the year: 170,000
2. Beginning Work-in-process, March 1 (Job 55) $21,000
3. Beginning Finished Goods, March 1 (Job 57) $88,000
2. Labor Information for March:
Direct-labor hours:
Job 55 5,000
Job 58 6,400
Job 59 2,600
Labor costs in factory:
Direct-labor wages $280,000
Indirect-labor wages $20,000
3. Material Information for March:
Raw Materials, Inventory, March 1 $8,000
Purchase or raw material $159,000
Direct materials requisitioned:
Job 55 $55,000
Job 58 $72,000
Job 59 $18,000
4. Other costs incurred in March:
Factory Utilities $1,800
Sales offices Utilities $1,100
Administrative offices Utilities $1,900
Factory equipment repair and maintenance costs $1,700
Depreciation on factory equipment $3,000
Manufacturing supplies purchased and used $2,000
5. During March the following jobs were completed :
Job 55
Job 58
6. During March the following jobs were sold for the following amounts:
Job 55 $215,000
Job 57 $100,000
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 55 Job 58 Job 59
Beginning Balance
Current costs:
Direct materials
Direct Labor Hint: You need to calculate the hourly rate and then compute direct labor cost per job.
Applied overhead
Total
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
Current manufacturing costs:
Cost of material placed in production
Raw materials, 3/1/XX
Purchases
Total available
Raw materials, 3/31/XX
Direct Labor
Manufacturing overhead Applied
Work-in-process March 1, 20XX
Total costs in process
Work-in-process March 31, 20XX
Cost of goods manufactured
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, but you do not have to provide a detailed COGS section, since you know COGS relates to the Job(s) sold at cost and should agree with your analysis in #5 above.
Glass Company
Income Statement
For Month ending March 31, 20XX
Sales
Cost of goods sold
Gross Profit
Selling and Administrative expenses
Net income
8. Determine the dollar amount and the underapplied or overapplied manufacturing for March. Provide your calculations.
9. Prepare a Pie chart below showing the three product costs that were added to the job cost sheets in March.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Human Resource Management

Authors: Robert L. Mathis, John H. Jackson

13th Edition

053845315X, 978-0538453158

More Books

Students also viewed these Accounting questions

Question

What media access control technique does your class use?

Answered: 1 week ago

Question

What does the transport layer do?

Answered: 1 week ago