Job Order Costing BEGINNING POSITION: JayBird Inc. is a small producer of custom birdhouses in London, Ontario. It uses a job order cost- ing system because each birdhouse is custom build for its owner and therefore receives varying at- tention and effort from the two departments, building and finishing. JayBird Inc. uses a perpetual inventory system. JayBird Inc. had the following post-closing trial balance as of December 31, 2021: Cash Accounts Receivable Raw Materials Inventory Work in Process Inventory $30,367 21,330 ? ? Finished Goods Inventory ? Unexpired Insurance 11,221 Office Equipment 35,000 Accumulated amortization - Office Equipment $3,500 Factory Equipment 666,000 Accumulated Amortization - Factory Equipment 305,000 Accounts Payable 21,981 Wages and Salaries Payable 1,050 Capital Stock Accrued Utilities Accrued Property Taxes Retained Earnings 2,600 3,250 170,000 ? ? ? Work in process: Detail in Subsidiary Records As of December 31, 2021 Job order Numb Dep't Direct Direct Material Factory Overhe Total er S Labour ad Cost $2,740 19-17 Building 00 $1,075. 00 $1,600 $5,415. 00 00 Finishin g $1,037. $387.00 $400.00 $250.00 00 $6,452. 00 Finished goods: Stock Referenc # Unit Quantity Cost Total Cost X-1 Job 19-15 300.00 78.00 $ ? X-2 Job 19-16 812.00 22.00 $? $? Raw materials: RM Total Type Quantity Unit Cost Cost ABC A 5,115 ? (A) ? 11,325 ? (B) ? 700 ? (C) Supplies Various ? $3,150.0 0 ? Labour costs and overhead costs: The hourly rate including benefits for Building is $ (D) and for finishing is $ _(E). To cost jobs as they are worked on, a predetermined or budgeted overhead rate was computed for 2022 based on the following budgeted cost drivers: Building department Finishing department 50,200 machine hours $172,000 of direct labour These overhead rates will be used throughout the year by each department. All overhead will be applied to all jobs worked on during the year in proportion to the machine-hour and/or direct-labour cost devoted to each job. JayBird Inc. rents its factory building. This budget was prepared after careful consideration of the sales outlook for the coming year. The forecasted budget consisted of the following items: JayBird Inc. Factory Overhead Budget For The Year Ended December 31, 2022 Building Finishing Total Variable costs: Supplies $14,200 $5,400 $19,600 Indirect Labour 22,800 16,800 39,600 Utilities 30,000 8,000 38,000 Repairs 24,000 6,000 30,000 Misc. 19,000 11,000 30,000 110,000 47,200 157,200 Fixed costs: Insurance 7,000 4,620 $11,620 Amortization 90,000 14,400 104,400 Rent 24,000 13,000 37,000 Property taxes 4,980 1,200 6,180 Supervision 10,000 15,900 25,900 135,980 49,120 185,100 Total Factory Overhead $245,980 $96,320 $342,300 FOH rate = budgeted FOH budgeted cost driver TRANSACTIONS: The following transactions occurred during the month of January 2022: 1. Purchases of raw materials (on account): RM Type Units $$ 101 Receiving report # 2 A 5,000 ? 101 Receiving report # 3 B 6,000 ? 101 Receiving report # 4 A 2,500 ? 101 Receiving report # 5 B 5,000 ? 101 Receiving report # 6 C 2,125 ? 101 Receiving report # 7 B 3,000 ? 101 Supplie $3,045.0 Receiving report # 8 s N/A 0 Assume that costs have not changed in the last year. 2. Returns on account: 41 units of material B. (receiving report #1019) 3. The direct material requisitions were summarized, and the following data were shown on a material usage report. Building Department Direct Material Usage For the Month Ended January 31, 2022 Requisition RM Type Job Order Quantity M89 B 19-18 1,500 M90 A 19-19 3,017 M91 A 19-20 800 M92 B 19-20 1,000 M93 B 19-19 3,000 M94 M95 BA 19-18 200 A 19-21 1,900 Finishing Department Direct Material Usage For the Month Ended January 31, 2022 Requisition Type Job Order Quantity A301 C 19-17 5 A302 C 19-20 200 A303 19-18 800 A304 19-19 1,500 19-20 20 A305 4. A summary of payroll costs incurred as per the time tickets is as follows: Actual Labour Hours Worked For the Month Ended January 31, 2022 Work Job Buildin Finishin Ticket Order g g ML480 19-18 4 ML481 19-18 300 ML482 19-20 200 ML483 19-19 240 ML484 19-21 100 ML485 19-20 20 AL60 19-17 4 AL61 19-19 1,400 AL62 19-18 100 AL63 19-20 200 AL64 19-19 40 Total direct labour 864 1,744 Other payroll costs: Buildi Finishin ng g Total $2,00 $3,50 Indirect labour 0 $1,500 0 $1,20 $2,80 Factory Supervision 0 $1,600 0 Selling and admin. $6,00 Wages 0 5. Apply overhead to jobs. See data for item 6 to obtain machine hours worked. (A direct la- borer operates more than one machine simultaneously, so machine hours are not necessarily equal to labour hours incurred by Builders). 6. Use the following information to (a) record the completion and (b) the sale of the items: JayBird Inc. Production and Sales Data For the Month Ended January 31, 2022 Job Finishe d Date # Mach Hours Stock Invoice Sold Sales Units Finished Number Number Units Revenue 19-15 221 Dec. 11/20 n/a X-1 #923 200 $40,000 19-16 821 Dec. 15/20 n/a X-2 #924 800 36,000 19-17 50 Jan. 5/21 0 X-3 #925 20 6,800 19-18 1750 Jan. 12/21 3,000 X-4 #926 900 24,400 19-19 1000 Jan. 19/21 2,000 X-5 #927 950 75,000 19-20 100 19-21 Unfinished Jan. 30/21 150 X-6 #928 49 8,500 800 $190,700 5,950 * *All sales are on account. 7. Gross payroll (factory and office) of $41,006 is paid in cash. 8. The following additional overhead costs were incurred during January: Selling Finishin & Account to Item Total Building g Admin. Credit $2,10 Supplies requisitioned 0 $1,600 $400 $100 ? Utilities 4,000 2,700 800 500 Accrued utilities Repairs by outsiders 3,000 2,350 600 50 A/P Miscellaneous 3,000 2,000 900 100 A/P Insurance 1,000 600 200 200 ? Amortization on 11,00 equip. 0 9,500 1,200 300 ? Rent 4,000 2,000 1,400 600 A/P Property taxes 800 450 250 100 Accr. prop. Taxes $28,9 00 $21,200 $5,750 $1,950 9. Utility bills received $2,744 (DR Accrued utilities and CR A/P). 10. Utility bills paid, $2,364. 11. Other selling and administrative expenses incurred, $12,000. 12. Other payments on account, $61,950. 13. Collections on account, $119,547. 14. Close under- or over-applied Factory Overhead to Cost of Goods Sold. REQUIRED: You should use Excel 1. Enter all starting balances in the GL and subledgers. You will need to calculate your raw materi- als inventory value (about $30,000) based on your assigned variables. Adjust retained earnings to balance the opening trial balance. Round all totals to the nearest dollar and all per unit num- bers to two decimal places. 2. Journalize the above summary transactions, all dated January 31, 2022. (No new balance sheet accounts are required. You should need to add only the following temporary accounts: Reve- nue, Cost of Goods Sold, Selling & Administrative Expense, Factory Overhead.)