(JOB A= Job 450)

(JOB B= Job 500)

(JOB C= Job 550)

Prepare, in good form, a Sc

hedule of Cost of Goods Manufactured for 2018.

B. Add up the total costs of Jobs A, B and C. Does this total equal your Cost of Goods Manufactured from Part A? Should it?

C. Compute the underapplied or overapplied overhead for 2018. Is it under or overapplied?

D. Assume that any underapplied or overapplied overhead is closed totally to Cost of Goods Sold at the end of 2018. Prepare, in good form, an Income Statement for 2018.

Sassafras Yacht Corporation began operations on December 1, 2017. The company uses normal costing as part of a job-order cost system. During December, the company purchased $75,000 of direct material, and then used $60,000 of these direct materials to start Job 450. The company charged total conversion costs of $80,000 (direct labor and overhead) to Job 450 during December As of the end of December Job 450 was not complete. There was no underapplied or overapplied overhead for December. The company charges overhead to jobs using direct labor HOURS (careful!). The estimated direct labor hours for 2018 are 25,000 hours and the estimated overhead cost for 2018 is $600,000. During 2018, the following transactions occurred. There were 5 jobs that had work completed on them in 2018. Some of the data for these jobs are shown below: Job 450 Job 500 Job 550 Job 600 Job 650 Direct Material Cost $8,000 $60,000 $80,000 $20,000 $12,000 Direct Labor Hours 5,000 hrs. 6,000 hrs. 10,000 hrs. 2,000 hrs. 3,000 hrs. nimi + The Direct Labor Rate for 2018 is $40 per hour. The company purchased $200,000 of direct materials. At the end of 2018, the jobs that were not finished were Jobs 600 and 650. Job 450 consisted of 5,000 units of which 4,200 sold in 2018 at a selling price of $200 each. Job 550 consisted of 15,000 units of which 10,000 sold in 2018 at a selling price of $100 each. Job 500 consisted of 10,000 units, none of which sold at the end of 2018. Other costs incurred during 2018 include the following: Advertising Expense $125,000 Indirect Labor $275,000 Maintenance- Factory $ 75,000 Factory Insurance $ 45,000 Administrative Expense $450,000 Corporate General Expenses $150,000 Depreciation - Factory $60,000 F.G. Warehouse Depreciation $ 40,000 Utilities- Factory $110,000 Miscellaneous Overhead $ 60,000 Selling Expense $200,000 Indirect Materials $ 75,000 Sassafras Yacht Corporation began operations on December 1, 2017. The company uses normal costing as part of a job-order cost system. During December, the company purchased $75,000 of direct material, and then used $60,000 of these direct materials to start Job 450. The company charged total conversion costs of $80,000 (direct labor and overhead) to Job 450 during December As of the end of December Job 450 was not complete. There was no underapplied or overapplied overhead for December. The company charges overhead to jobs using direct labor HOURS (careful!). The estimated direct labor hours for 2018 are 25,000 hours and the estimated overhead cost for 2018 is $600,000. During 2018, the following transactions occurred. There were 5 jobs that had work completed on them in 2018. Some of the data for these jobs are shown below: Job 450 Job 500 Job 550 Job 600 Job 650 Direct Material Cost $8,000 $60,000 $80,000 $20,000 $12,000 Direct Labor Hours 5,000 hrs. 6,000 hrs. 10,000 hrs. 2,000 hrs. 3,000 hrs. nimi + The Direct Labor Rate for 2018 is $40 per hour. The company purchased $200,000 of direct materials. At the end of 2018, the jobs that were not finished were Jobs 600 and 650. Job 450 consisted of 5,000 units of which 4,200 sold in 2018 at a selling price of $200 each. Job 550 consisted of 15,000 units of which 10,000 sold in 2018 at a selling price of $100 each. Job 500 consisted of 10,000 units, none of which sold at the end of 2018. Other costs incurred during 2018 include the following: Advertising Expense $125,000 Indirect Labor $275,000 Maintenance- Factory $ 75,000 Factory Insurance $ 45,000 Administrative Expense $450,000 Corporate General Expenses $150,000 Depreciation - Factory $60,000 F.G. Warehouse Depreciation $ 40,000 Utilities- Factory $110,000 Miscellaneous Overhead $ 60,000 Selling Expense $200,000 Indirect Materials $ 75,000