LO2,4 P18-37. Job Costing with Predetermined Overhead Rate Snoblo Company manufactures a variety of gasoline-powered snow blowers for discount hardware and department stores. SnoBlo uses a job cost system and treats each customer's order as a separate job. The primary snow blower components (motors, chassis, and wheels) are purchased from three different suppliers under long-term contracts that call for the direct delivery of raw materials to the production floor as needed. When a customer's order is received, a raw materials purchase order is electronically Module 10 Product Costing Job and Process Operations Cambridge Business Publishers placed with suppliers. The purchase order specifies the scheduled date that production is to begin as the delivery date for motors and chassis: the scheduled date production is to be completed is specified as the delivery date for the wheels. As a consequence, there are no raw materials inventories, raw materials are charged directly to Work in Process upon receipt. Upon completion, goods are shipped directly to customers rather than transferred to finished goods inventory. At the beginning of July Solilo had the following work-in-process inventories Job 365 Job 386 Job 367 Job 368 Total $ 40,000 29,800 30.600 17.000 $117.400 During July, the following activities took place: Started Jobs 369,370, and 371 Ordered and received the following raw materials for specified job Job Motors Chassis Wheels 356 367 368 360 370 371 Total 28.000 18.000 17.000 $63.000 0 0 10.000 7.000 7200 $24,200 $1,600 2400 3,050 2.100 1.800 0 Total $ 1800 2.400 3.050 40,100 26.800 24.200 se, 150 $10.950 - Incurred July manufacturing payroll: Direct labor Job 365 Job 366 Job 367 Job 388 Job 309 Job 370 Job 371 Total Indirect labor $ 2450 7.500 6,500 3.300 5.850 5,050 3.000 38.750 6,850 345.600 Total incurred additional manufacturing overhead costs for July Manufacturing supplies purchased on account and used Depreciation on factory fixed assets Miscellaneous payables Total $ 5.700 11.800 9.500 Applied manufacturing overhead using a predetenuined rate based on predicted annual overhead of $405,000 and predicted annual direct labor of $450.000 Completed and shipped Jobs 365 through 370, Required Prepare a complete analysis of all activity in Work in Process Be sure to show the beginning and end ing balances, all increases and decreases and labelcach item. Provide support information on decreases with job cost sheets LO2,4 P18-37. Job Costing with Predetermined Overhead Rate Snoblo Company manufactures a variety of gasoline-powered snow blowers for discount hardware and department stores. SnoBlo uses a job cost system and treats each customer's order as a separate job. The primary snow blower components (motors, chassis, and wheels) are purchased from three different suppliers under long-term contracts that call for the direct delivery of raw materials to the production floor as needed. When a customer's order is received, a raw materials purchase order is electronically Module 10 Product Costing Job and Process Operations Cambridge Business Publishers placed with suppliers. The purchase order specifies the scheduled date that production is to begin as the delivery date for motors and chassis: the scheduled date production is to be completed is specified as the delivery date for the wheels. As a consequence, there are no raw materials inventories, raw materials are charged directly to Work in Process upon receipt. Upon completion, goods are shipped directly to customers rather than transferred to finished goods inventory. At the beginning of July Solilo had the following work-in-process inventories Job 365 Job 386 Job 367 Job 368 Total $ 40,000 29,800 30.600 17.000 $117.400 During July, the following activities took place: Started Jobs 369,370, and 371 Ordered and received the following raw materials for specified job Job Motors Chassis Wheels 356 367 368 360 370 371 Total 28.000 18.000 17.000 $63.000 0 0 10.000 7.000 7200 $24,200 $1,600 2400 3,050 2.100 1.800 0 Total $ 1800 2.400 3.050 40,100 26.800 24.200 se, 150 $10.950 - Incurred July manufacturing payroll: Direct labor Job 365 Job 366 Job 367 Job 388 Job 309 Job 370 Job 371 Total Indirect labor $ 2450 7.500 6,500 3.300 5.850 5,050 3.000 38.750 6,850 345.600 Total incurred additional manufacturing overhead costs for July Manufacturing supplies purchased on account and used Depreciation on factory fixed assets Miscellaneous payables Total $ 5.700 11.800 9.500 Applied manufacturing overhead using a predetenuined rate based on predicted annual overhead of $405,000 and predicted annual direct labor of $450.000 Completed and shipped Jobs 365 through 370, Required Prepare a complete analysis of all activity in Work in Process Be sure to show the beginning and end ing balances, all increases and decreases and labelcach item. Provide support information on decreases with job cost sheets