Instruction:

Comprehensively solve and prepare what is being required on the given case problem.

Problem$-$Solving:

Problem $3-57$

Comprehensive Job$-$Order Costing Problem

Check: Scholastic Brass Corporation refer to Textbook on page $129-131.$

Scholastic Brass Corporation manufactures brass musical instruments for use by high school students. The company uses a normal costing system, in which manufacturing overhead is applied on the basis of direct$-$labor hours. The company's budget for the current year included the following predictions.

Budgeted total manufacturing overhead $$426,300$

Budgeted total direct$-$labor hours $($based on practical capaci.................... $20,300$

During March, the firm worked on the following two production jobs:

Job number T$81,$ consisting of $76$ trombones

Job number $C40,$ consisting of $110$ cornets

The events of March are described as follows:

a$.$ One thousand square feet of rolled brass sheet metal were purchased on account for $$5,000.$

h$.$ Four hundred pounds of hrass tubing were purchased on ac:count for $$4,000$

c$.$ The following requisitions were submitted on March $5$ :

Requisition number $112$: $250$ square feet of brass sheet metal at $$5$ per square foot $($for job number T$81)$

Requisition number $113$: $1,000$ pounds of brass tubing, at $$10$ per pound $($for job number C$40)$

Requisition number $114$: $10$ gallons of valve lubricant, at $$10$ per gallon

All brass used in production is treated as direct material. Valve lubricant is an indirect material.

d$.$ An analysis of labor time cards revealed the following labor usage for March. Direct labor: Job number T$81,800$ hours at $$20$ per hour

Direct labor: Job number C$40,900$ hours at $$20$ per hour

Indirect labor: General factory cleanup, $$4,000$

Indirect labor: Factory supervisory salaries, $$9,000$

e$.$ Depreciation of the factory building and equipment during March amounted to $$12,000.$

f$.$ Rent paid in cash for warehouse space used during March was $$1,200.$

g$.$ Utility costs incurred during March amounted to $$2,100.$ The invoices for these costs were received, but the bills were not paid in March.

h$.$ March property taxes on the factory were paid in cash, $$2,400.$

i$.$ The insurance cost covering factory operations for the month of March was $$3,100.$ The insurance policy had been prepaid.

j$.$ The costs of salaries and fringe benefits for sales and administrative personnel paid in cash during March amounted to $$8,000.$

k$.$ Depreciation on administrative office equipment and space amounted to $$4,000.$

Other selling and administrative expenses paid in cash during March amounted to $$1,000.$

$m.$ Job number T$81$ was completed on March $20.$

n$.$ Half of the trombones in job number T$81$ were sold on account during March for $$700$ each.

The March $1$ balances in selected accounts are as follows:

Required:

Calculate the company's predetermined overhead rate for the year.

Prepare journal entries to record the events of March.

Set up $T-$accounts, and post the joumal entries made in requirement $2.$

Calculate the overapplied or underapplied overhead for March. Prepare a journal entry to close this balance into Cost of Goods Sold.

Prepare a schedule of cost of goods manufactured for March.

Prepare a schedule of cost of goods sold for March.

Prepare an income statement for March.