Job Costing Project real-time, eliminate tedious calculations, and prevent errors. However, the underlying process is the same regardless of whether the company uses electronic or manual documents. In this assignment you will be required to complete tasks related to job costing. Download the document, complete the required information, save the document, and submit the assignment in Blackboard. Req. 1 (3 points): Before the year began, Custom Fabric Ventures estimated the following overhead costs for the year: Due Date: October 8, 2019. Submit as an attachment in Blackboard in the Assignment for October 2 - 8: Module 18 Content Area. Total Possible Points = 50 points. Custom Fabric Ventures is a small company that produces fabric-based wardrobe accessories (such as, handbags, scarves, and headbands) and home accessories (such as placemats, pillows, and window treatments). The company keeps a limited number of popular items in stock, but primarily produces custom orders. Customers are able to choose from a wide selection of styles, sizes, and fabrics for each type of product. Most of the company's customers are small boutiques, home dcor shops, and home- decorators who serve clientele with discerning tastes. As a result, customers expect high-quality products. Type of Cost Estimated total cost for the year Indirect plant labor 40,000 Plant utilities 50,000 Lease and property taxes on the plant 120,000 Depreciation on production equipment (Equipment originally costing $700,000 140,000 three year ago is being depreciated over a 5 year useful life using straight-line depreciation. No salvage value is expected.) | Indirect materials to be used in the plant 20,000 Calculate the company's predetermined manufacturing overhead rate, assuming the company uses direct labor hours as its allocation base. Estimated total direct labor hours are 40,000. The sales staff of Custom Fabric Ventures has just received the following order: Custom Fabric Ventures Customer Order Form Customer: Katie's Boutique Order Date: 6/2/2019 Order Due Date: 6/15/2019 Description: Black & White Handbag Req. 2 (3 points): The production engineers have given you the materials requirements for each Black & White handbag. Assume that no efficiencies in materials can be achieved by producing more than one unit per batch. Complete the Bill of Materials for Job #114 found below. Be sure to include the quantity being produced in the Job as well as the total quantity needed for each direct material. Quantity Model Number: BW14923 Unit Sales Price $75 Total $525 Total Quantity needed Due to its popularity, the Black and White Handbag (BW14293) is normally a stock item. However, the handbag is currently out of stock. Rather than producing only enough units to fill Katie's order, management would like to produce a job (Job 114) that is large enough to fill Katie's order and replenish stock. The fabric used for this job can be stacked four layers deep for cutting, while still maintaining the quality and precision of the cut. Therefore, the company is able to realize some economies of scale by producing the handbags in multiples of 4. Therefore, management has decided to produce 40 units in this job to have a minimum of 30 handbags left in stock after Katie's order has been filled. BILL OF MATERIALS JOB 114 Model: BW14923 Quantity: _units Part Description Number BWFF Black and White Floral Fabric BWCheck Black and White Checkered Fabric BFringe Black Fringe Trim BStrap Black shoulder strapping PlCan Plastic Canvas Int4 Interfacing: Level 4 sturdiness rating Quantity Needed per unit 1/2 yard 3/4 yard 1 yard 1 and 3/4 yard 1/4 sheet 1/2 yard Your primary task is to determine the cost of producing Job 114 so that you can calculate the gross profit on the sale to Katie's Boutique. As part of this process, you will be required to schedule production, purchase any raw materials that are not currently in stock, requisition materials for the job, and complete the job cost record. Req. 3 (3 points): The production engineers have also given you the production labor requirements for each individual bag produced, assuming one bag is produced at a time: Cutting time: 30 minutes per bag, Sewing time: 70 minutes per bag; Ironing time: 8 minutes per bag Req. 6 (4 points): Assume shipments of all supplies arrive on 6/9. Your receiving personnel have checked the receipts against the Purchase Order and Invoice, and have noted no discrepancies in the ordered quantities or prices. Since the company keeps perpetual inventory records, update the Raw Materials Records for the materials received and the new balance in stock. Update both the physical quantities and costs. The company uses First-In, First-Out (FIFO) as its inventory flow assumption. If needed, keep track of separate inventory price layers. Since each bag must be sewn and ironed individually, no sewing and ironing labor efficiencies can be achieved by producing larger batch sizes. Recall, however, that fabric can be stacked for cutting purposes, such that the material for four bags can be cut in the same amount of time it would take to cut one individual bag. Compute the estimated labor time requirement for producing Job 114. Req. 7 (4 points): The scheduled start date for the job has arrived. In order to begin production the materials for the job are needed in the plant. Production would like to requisition all needed materials at one time. Complete the Materials Requisition (fill in the date, Job #, and quantity needed) so that the inventory storeroom personnel know the quantities and types of material to pick. TOTAL hours required for Job 114: Materials Requisition Number: #6786 Req. 4 (4 points): Consult the Raw Materials records to determine the types and quantities of materials you currently have in stock. Determine which types of materials you need to purchase for Job 114 and how much of each you'll need. List the materials that need to be purchased, along with the quantity of each needed: Description Date: Job: Part number BWFF BWCheck Quantity Needed Unit Cost Total Cost Black and White Floral Fabric Black and White Checkered Fabric BFringe BStrap PlCan Black Fringe Trim Black shoulder strapping Plastic Canvas nterfacing: Level 4 rating Total Req. 5 (4 points): Complete the purchase order (supplier, date needed, item number, quantity, cost, total, total for the whole order) assuming you are only buying what you need for this job, and no other jobs. Price list is provided at the end. No shipping is charged. Note: The supplier only allows you to order in increments of 5 yards at time, so you may have to buy a little more than what you need. This is not a problem for your company, as it can always use large pieces of leftover material for other jobs. Custom Fabric Ventures also has a standing contract with Mattel to produce clothing for dolls. Thus, small fabric remnants can always be used for the toy clothing line. Req. 8 (4 points): The storeroom personnel correctly pick the direct materials and send them to production. Complete the cost information on the Materials Requisition above, assuming the company uses First-In, First-Out (FIFO) as its inventory flow assumption. Purchase Order Req. 9 (3 points): Start a Job Cost Record for Job 114 (see below). Record the direct materials used by the job by recording the materials requisition number and the total cost of materials requisitioned. Supplier: Date ordered: 6/3 Date needed by: Item Number Quantity Cost per yard Total Cost Req. 10 (4 points): Using the Labor Time Records for the week (provided below), determine how much direct labor cost to assign to Job 114. Record the direct labor used by the job by recording the labor time record numbers, hours worked, and total DL cost on the job cost record. TOTAL Req. 11 (3 points): Calculate the amount of manufacturing overhead to allocate to Job 114. Show your calculations on the job cost record. Job Cost Record Req. 12 (3 points): Complete the job cost record. Determine the total job cost as well as the cost of each handbag in the job. Job Number: Customer or Stock: Job description: Date Started: Quantity _ Date Completed: Req. 13 (3 points): Calculate the gross profit on the sale to Katie's Boutique: Manufacturing Cost Information: Cost Summary Direct Materials (list Materials Requisition # and cost) Req. 14 (5 points): Katie's Boutique has found an overseas manufacturer that will sell the handbags for $50 per unit for the same handbag and has requested that Custom Fabric Ventures sell the handbags for $50. Should Custom Fabric Ventures match the price of this competitor? Explain your answer in 100- 200 words. Direct Labor (list labor time record # and cost) Manufacturing Overhead (show calculation of amount allocated) Total Job Cost Number of units Cost per Unit Item No. WEE Received Cost Total Raw Materials Record Description: Black and White Floral Fabric Used Balance Requisition Units Cost Total Units Cost Total Number 6 yds $6.00 $36.00 Item No. BStran Received Date Units Cost Raw Materials Record Description: Black Strapping Used Balance Requisition Units Cost Total Units Cost Number Date Units Total Total 6/1 6/1 $0.00 Item No. BWCheck Received Date Units Cost Raw Materials Record Description: Black & White Checkered Fabric Used Balance Requisition Units Cost Total Units Cost Total Number 20 yd $8.00 $160.00 Raw Materials Record Total Item No. pican Received Cost Description: Plastic Canvas Sheets Balance Total Units Cost Total Date Units Used Requisition Units Number Total Cost 6/1 25 sh. $0.90 $22.50 Item No. Beringe Received Date Units Cost Raw Materials Record Description: Black Fringe Trim Used Balance Requisition Units Cost Total Units Cost Number 3 yd $3.00 Raw Materials Record Total Total Item No. Int4 6/1 Description: Interfacing-level 4 Balance Total Units Cost Total $9.00 Received Cost Used Units Date Units Total Cost Requisition Number 6/1 50 yds $4.00 $200.00 Authorized Suppliers: JoAnne Fabrics Labor Time Record Week: 6/8-6/15 Record #: 324 Start Time End Time Hours Cost Job Employee: Tyler David Hourly wage rate: $10 Date number 6/8 113 113 114 6/11 114 6/12 115 4:00 5:00 | 8:00 12:00 8:00 8:00 9:00 | 4.00 1:00 $40 JoAnne Fabrics- Commercial Division Part Number Name Price per yard BWFF Black and White Floral $6.50 FF620 Funky Floral $3.25 J293 Jacobean $12.00 DB524 Denim Block $8.50 RD590 Razzle Dazzle $3.50 Atone Aqua Tone $2.75 BWCheck Black & White Check $7.00 Gswid Green Swise! $9.50 plcan Plastic Canvas $1.00 Int4 Interfacing-level 4 $4.00 Int 5 Interfacing-level 5 $4.50 RRWPink Rik Rak- Hot Pink $2.75 BBead, Black Beads $5.75 BFringe Black Fringe $3.00 OGStrap Olive Green Strapping | $2.50 BStrap Black Shoulder Strapping $2.00 Labor Time Record Week: 6/8-6/15 Record #: 325 Start Time End Time Job Hours Cost Employee: Fli Kunde Hourly wage rate: $15 Date number 6/8 112 6/9 113 6/ 10 1 14 6/11 | 114 6/12 115 8:00 10:00 8:00 8:00 9:00 11:00 2:00 4:00 2:00 4:00 | 3 4 8 6 71 $ 45 $60 $ 120 S 90 $105 Labor Time Record Week: 6/8-6/15 Record #: 326 Start Time End Time Hours Cost Employee: Stephanie Berg Hourly wage rate: $12 Date Job number 6/8 112 6/9 113 6/10 114 114 6/12 115 1 8:00 12:00 8:00 8:00 :00 2:00 5:00 1:00 4:00 1:00 6 $72 5 $60 5 S 60 8 LS 96 4 $48 9 Job Costing Project real-time, eliminate tedious calculations, and prevent errors. However, the underlying process is the same regardless of whether the company uses electronic or manual documents. In this assignment you will be required to complete tasks related to job costing. Download the document, complete the required information, save the document, and submit the assignment in Blackboard. Req. 1 (3 points): Before the year began, Custom Fabric Ventures estimated the following overhead costs for the year: Due Date: October 8, 2019. Submit as an attachment in Blackboard in the Assignment for October 2 - 8: Module 18 Content Area. Total Possible Points = 50 points. Custom Fabric Ventures is a small company that produces fabric-based wardrobe accessories (such as, handbags, scarves, and headbands) and home accessories (such as placemats, pillows, and window treatments). The company keeps a limited number of popular items in stock, but primarily produces custom orders. Customers are able to choose from a wide selection of styles, sizes, and fabrics for each type of product. Most of the company's customers are small boutiques, home dcor shops, and home- decorators who serve clientele with discerning tastes. As a result, customers expect high-quality products. Type of Cost Estimated total cost for the year Indirect plant labor 40,000 Plant utilities 50,000 Lease and property taxes on the plant 120,000 Depreciation on production equipment (Equipment originally costing $700,000 140,000 three year ago is being depreciated over a 5 year useful life using straight-line depreciation. No salvage value is expected.) | Indirect materials to be used in the plant 20,000 Calculate the company's predetermined manufacturing overhead rate, assuming the company uses direct labor hours as its allocation base. Estimated total direct labor hours are 40,000. The sales staff of Custom Fabric Ventures has just received the following order: Custom Fabric Ventures Customer Order Form Customer: Katie's Boutique Order Date: 6/2/2019 Order Due Date: 6/15/2019 Description: Black & White Handbag Req. 2 (3 points): The production engineers have given you the materials requirements for each Black & White handbag. Assume that no efficiencies in materials can be achieved by producing more than one unit per batch. Complete the Bill of Materials for Job #114 found below. Be sure to include the quantity being produced in the Job as well as the total quantity needed for each direct material. Quantity Model Number: BW14923 Unit Sales Price $75 Total $525 Total Quantity needed Due to its popularity, the Black and White Handbag (BW14293) is normally a stock item. However, the handbag is currently out of stock. Rather than producing only enough units to fill Katie's order, management would like to produce a job (Job 114) that is large enough to fill Katie's order and replenish stock. The fabric used for this job can be stacked four layers deep for cutting, while still maintaining the quality and precision of the cut. Therefore, the company is able to realize some economies of scale by producing the handbags in multiples of 4. Therefore, management has decided to produce 40 units in this job to have a minimum of 30 handbags left in stock after Katie's order has been filled. BILL OF MATERIALS JOB 114 Model: BW14923 Quantity: _units Part Description Number BWFF Black and White Floral Fabric BWCheck Black and White Checkered Fabric BFringe Black Fringe Trim BStrap Black shoulder strapping PlCan Plastic Canvas Int4 Interfacing: Level 4 sturdiness rating Quantity Needed per unit 1/2 yard 3/4 yard 1 yard 1 and 3/4 yard 1/4 sheet 1/2 yard Your primary task is to determine the cost of producing Job 114 so that you can calculate the gross profit on the sale to Katie's Boutique. As part of this process, you will be required to schedule production, purchase any raw materials that are not currently in stock, requisition materials for the job, and complete the job cost record. Req. 3 (3 points): The production engineers have also given you the production labor requirements for each individual bag produced, assuming one bag is produced at a time: Cutting time: 30 minutes per bag, Sewing time: 70 minutes per bag; Ironing time: 8 minutes per bag Req. 6 (4 points): Assume shipments of all supplies arrive on 6/9. Your receiving personnel have checked the receipts against the Purchase Order and Invoice, and have noted no discrepancies in the ordered quantities or prices. Since the company keeps perpetual inventory records, update the Raw Materials Records for the materials received and the new balance in stock. Update both the physical quantities and costs. The company uses First-In, First-Out (FIFO) as its inventory flow assumption. If needed, keep track of separate inventory price layers. Since each bag must be sewn and ironed individually, no sewing and ironing labor efficiencies can be achieved by producing larger batch sizes. Recall, however, that fabric can be stacked for cutting purposes, such that the material for four bags can be cut in the same amount of time it would take to cut one individual bag. Compute the estimated labor time requirement for producing Job 114. Req. 7 (4 points): The scheduled start date for the job has arrived. In order to begin production the materials for the job are needed in the plant. Production would like to requisition all needed materials at one time. Complete the Materials Requisition (fill in the date, Job #, and quantity needed) so that the inventory storeroom personnel know the quantities and types of material to pick. TOTAL hours required for Job 114: Materials Requisition Number: #6786 Req. 4 (4 points): Consult the Raw Materials records to determine the types and quantities of materials you currently have in stock. Determine which types of materials you need to purchase for Job 114 and how much of each you'll need. List the materials that need to be purchased, along with the quantity of each needed: Description Date: Job: Part number BWFF BWCheck Quantity Needed Unit Cost Total Cost Black and White Floral Fabric Black and White Checkered Fabric BFringe BStrap PlCan Black Fringe Trim Black shoulder strapping Plastic Canvas nterfacing: Level 4 rating Total Req. 5 (4 points): Complete the purchase order (supplier, date needed, item number, quantity, cost, total, total for the whole order) assuming you are only buying what you need for this job, and no other jobs. Price list is provided at the end. No shipping is charged. Note: The supplier only allows you to order in increments of 5 yards at time, so you may have to buy a little more than what you need. This is not a problem for your company, as it can always use large pieces of leftover material for other jobs. Custom Fabric Ventures also has a standing contract with Mattel to produce clothing for dolls. Thus, small fabric remnants can always be used for the toy clothing line. Req. 8 (4 points): The storeroom personnel correctly pick the direct materials and send them to production. Complete the cost information on the Materials Requisition above, assuming the company uses First-In, First-Out (FIFO) as its inventory flow assumption. Purchase Order Req. 9 (3 points): Start a Job Cost Record for Job 114 (see below). Record the direct materials used by the job by recording the materials requisition number and the total cost of materials requisitioned. Supplier: Date ordered: 6/3 Date needed by: Item Number Quantity Cost per yard Total Cost Req. 10 (4 points): Using the Labor Time Records for the week (provided below), determine how much direct labor cost to assign to Job 114. Record the direct labor used by the job by recording the labor time record numbers, hours worked, and total DL cost on the job cost record. TOTAL Req. 11 (3 points): Calculate the amount of manufacturing overhead to allocate to Job 114. Show your calculations on the job cost record. Job Cost Record Req. 12 (3 points): Complete the job cost record. Determine the total job cost as well as the cost of each handbag in the job. Job Number: Customer or Stock: Job description: Date Started: Quantity _ Date Completed: Req. 13 (3 points): Calculate the gross profit on the sale to Katie's Boutique: Manufacturing Cost Information: Cost Summary Direct Materials (list Materials Requisition # and cost) Req. 14 (5 points): Katie's Boutique has found an overseas manufacturer that will sell the handbags for $50 per unit for the same handbag and has requested that Custom Fabric Ventures sell the handbags for $50. Should Custom Fabric Ventures match the price of this competitor? Explain your answer in 100- 200 words. Direct Labor (list labor time record # and cost) Manufacturing Overhead (show calculation of amount allocated) Total Job Cost Number of units Cost per Unit Item No. WEE Received Cost Total Raw Materials Record Description: Black and White Floral Fabric Used Balance Requisition Units Cost Total Units Cost Total Number 6 yds $6.00 $36.00 Item No. BStran Received Date Units Cost Raw Materials Record Description: Black Strapping Used Balance Requisition Units Cost Total Units Cost Number Date Units Total Total 6/1 6/1 $0.00 Item No. BWCheck Received Date Units Cost Raw Materials Record Description: Black & White Checkered Fabric Used Balance Requisition Units Cost Total Units Cost Total Number 20 yd $8.00 $160.00 Raw Materials Record Total Item No. pican Received Cost Description: Plastic Canvas Sheets Balance Total Units Cost Total Date Units Used Requisition Units Number Total Cost 6/1 25 sh. $0.90 $22.50 Item No. Beringe Received Date Units Cost Raw Materials Record Description: Black Fringe Trim Used Balance Requisition Units Cost Total Units Cost Number 3 yd $3.00 Raw Materials Record Total Total Item No. Int4 6/1 Description: Interfacing-level 4 Balance Total Units Cost Total $9.00 Received Cost Used Units Date Units Total Cost Requisition Number 6/1 50 yds $4.00 $200.00 Authorized Suppliers: JoAnne Fabrics Labor Time Record Week: 6/8-6/15 Record #: 324 Start Time End Time Hours Cost Job Employee: Tyler David Hourly wage rate: $10 Date number 6/8 113 113 114 6/11 114 6/12 115 4:00 5:00 | 8:00 12:00 8:00 8:00 9:00 | 4.00 1:00 $40 JoAnne Fabrics- Commercial Division Part Number Name Price per yard BWFF Black and White Floral $6.50 FF620 Funky Floral $3.25 J293 Jacobean $12.00 DB524 Denim Block $8.50 RD590 Razzle Dazzle $3.50 Atone Aqua Tone $2.75 BWCheck Black & White Check $7.00 Gswid Green Swise! $9.50 plcan Plastic Canvas $1.00 Int4 Interfacing-level 4 $4.00 Int 5 Interfacing-level 5 $4.50 RRWPink Rik Rak- Hot Pink $2.75 BBead, Black Beads $5.75 BFringe Black Fringe $3.00 OGStrap Olive Green Strapping | $2.50 BStrap Black Shoulder Strapping $2.00 Labor Time Record Week: 6/8-6/15 Record #: 325 Start Time End Time Job Hours Cost Employee: Fli Kunde Hourly wage rate: $15 Date number 6/8 112 6/9 113 6/ 10 1 14 6/11 | 114 6/12 115 8:00 10:00 8:00 8:00 9:00 11:00 2:00 4:00 2:00 4:00 | 3 4 8 6 71 $ 45 $60 $ 120 S 90 $105 Labor Time Record Week: 6/8-6/15 Record #: 326 Start Time End Time Hours Cost Employee: Stephanie Berg Hourly wage rate: $12 Date Job number 6/8 112 6/9 113 6/10 114 114 6/12 115 1 8:00 12:00 8:00 8:00 :00 2:00 5:00 1:00 4:00 1:00 6 $72 5 $60 5 S 60 8 LS 96 4 $48 9