M N N o P Q 9 B D 9 D E F G H J K 1 Accounting 202 30 points 2 PROJECT 1 - Job Costing 3 4 Name: 5 6 Enter the last 4 non-zero digits of your student ID number: 6 67 7 Use the matched letters and numbers to fill in the missing numbers below. A 8 9 Save this file in EXCEL FORMAT as: P1Lastname 10 Using Excel functions is part of the grade for this project. 11 Round all answers to 2 decimal places. 12 Do not change rows or colums on this spreadsheet. Input areas are in yellow. 13 14 You are the owner of a small manufacturing firm that makes custom, appliqued flags. You operate 15 out of a rented building and currently employ 8 production workers: 2 that measure and mark the fabric, 2 that 16 cut the fabric, and four sewing machine operators. 17 18 Part I. Manufacturing Overhead: 19 At the beginning of the year it was estimated that manufacturing overhead would consist of the following: 20 21 The production supervisor earns $4,200 per month. 22 Rent on the manufacturing building is $1,400 per month. 23 Utilities per month: $ 6 71 24 B D 25 Fabric markers cost $2.80 and last 20 hours. (Only one employee at a time marks the fabric.) 26 Depreciation on cutting and sewing machinery per year: $ 61 61 7 27 B D 28 Each flag uses $ .80 of thread. 29 30 You estimate that 12,000 flags will be produced in the coming year and your 8 production workers will each work 2,000 31 hours each during the coming year. You have selected direct labor hours as your MOH allocation base. 32 33 1. Calculate total estimated manufacturing overhead for the year: 34 Manufacturing Total Annual 35 Overhead Costs Estimate 36 Production supervisor salary 37 Rent 38 Utilities 39 Fabric markers 40 Depreciation 41 Thread 42 Total 43 44 2. Calculate the predetermined overhead rate per direct labor hour for the year. Show your work in the space provided. 45 46 47 POHR: 48 9 B M N o 41 A B D E F G H K L | MTTEdu 42 Total 43 44 2. Calculate the predetermined overhead rate per direct labor hour for the year. Show your work in the space provided. 45 46 47 POHR: 48 49 Part II. Job Cost Sheet 50 You have received an order for 60 flags from the local branch of DBA America, a support organization for small business 51 owners. The flags will be given to each new member to proudly display in their businesses. 52 53 REQUIRED: Fill in the missing information below and complete the job cost sheet below for the DBA America order: 54 Job Cost Sheet Job 578 55 Direct Materials 56 Yards Cost per Yard Total 57 Rayon 60 +D $3.00 58 Satin 20 $5.00 59 Total 60 61 62 Direct Labor 63 Hours Rate per Hr. Total 64 Measurer D $14.00 65 Cutting labor 8 $12.00 66 Sewing labor 15 $16.00 67 Total 68 69 Manufacturing Overhead 70 Predetermined OH Rate DLH Used Total 71 72 73 Total Job Cost 74 Number of flags 60 75 Cost per flag 76 77 per DLH A B C D E G H 1 K L M N o $ $ $ $ 70 Predetermined OH Rate DLH Used Total 71 per DLH 72 73 Total Job Cost 74 Number of flags 60 75 Cost per flag 76 77 78 Part III. 79 Complete the following questions using your answers from Part I. and Part II. above: 80 1 Using your normal markup percent of 50% of cost, determine selling price per flag: 81 2 If you sold all but ten of the flags you made in the job above, total sales revenue would be: 82 3 If you sold all but ten of the flags you made in the job above, the cost of goods sold would be: 83 4 If you sold all but ten of the flags you made in the job above, your total gross profit would be: 84 Use the following to answer questions 5-7: 85 Assume you mistakenly treated the cost of production labor as a period cost (operating expense) 86 and you sold all but ten of the flags you made in the job above (for the same price calculated in #1). What is 87 resulting effect on the following financial statement elements ? 88 5 Assets Understated, Overstated, or No Effect 89 6 Cost of Goods Sold Understated, Overstated, or No Effect 90 7 Gross Profit Understated, Overstated, or No Effect 91 8 Assume that during the year, your production workers actually worked a total of 16,520 hours. 92 Manufacturing overhead allocated to all jobs during the year would be: 93 Use your answer in #8 and the following information to answer questions 9 and 10: 94 Assume that at year end it was determined that actual manufacturing overhead 95 totaled $83,200. 96 9 Manufacturing overhead would be: Overallocated or Underallocated 97 ## By how much? 98 Assume that the amount in #10 is not considered material and most of the flags have been 99 sold. 100 ## Which income statement account(s) would be adjusted for the overallocated or 101 underallocated overhead? 102 ## Would the account(s) be increased or decreased? Increase or Decrease 103 104 105 106 $ M N N o P Q 9 B D 9 D E F G H J K 1 Accounting 202 30 points 2 PROJECT 1 - Job Costing 3 4 Name: 5 6 Enter the last 4 non-zero digits of your student ID number: 6 67 7 Use the matched letters and numbers to fill in the missing numbers below. A 8 9 Save this file in EXCEL FORMAT as: P1Lastname 10 Using Excel functions is part of the grade for this project. 11 Round all answers to 2 decimal places. 12 Do not change rows or colums on this spreadsheet. Input areas are in yellow. 13 14 You are the owner of a small manufacturing firm that makes custom, appliqued flags. You operate 15 out of a rented building and currently employ 8 production workers: 2 that measure and mark the fabric, 2 that 16 cut the fabric, and four sewing machine operators. 17 18 Part I. Manufacturing Overhead: 19 At the beginning of the year it was estimated that manufacturing overhead would consist of the following: 20 21 The production supervisor earns $4,200 per month. 22 Rent on the manufacturing building is $1,400 per month. 23 Utilities per month: $ 6 71 24 B D 25 Fabric markers cost $2.80 and last 20 hours. (Only one employee at a time marks the fabric.) 26 Depreciation on cutting and sewing machinery per year: $ 61 61 7 27 B D 28 Each flag uses $ .80 of thread. 29 30 You estimate that 12,000 flags will be produced in the coming year and your 8 production workers will each work 2,000 31 hours each during the coming year. You have selected direct labor hours as your MOH allocation base. 32 33 1. Calculate total estimated manufacturing overhead for the year: 34 Manufacturing Total Annual 35 Overhead Costs Estimate 36 Production supervisor salary 37 Rent 38 Utilities 39 Fabric markers 40 Depreciation 41 Thread 42 Total 43 44 2. Calculate the predetermined overhead rate per direct labor hour for the year. Show your work in the space provided. 45 46 47 POHR: 48 9 B M N o 41 A B D E F G H K L | MTTEdu 42 Total 43 44 2. Calculate the predetermined overhead rate per direct labor hour for the year. Show your work in the space provided. 45 46 47 POHR: 48 49 Part II. Job Cost Sheet 50 You have received an order for 60 flags from the local branch of DBA America, a support organization for small business 51 owners. The flags will be given to each new member to proudly display in their businesses. 52 53 REQUIRED: Fill in the missing information below and complete the job cost sheet below for the DBA America order: 54 Job Cost Sheet Job 578 55 Direct Materials 56 Yards Cost per Yard Total 57 Rayon 60 +D $3.00 58 Satin 20 $5.00 59 Total 60 61 62 Direct Labor 63 Hours Rate per Hr. Total 64 Measurer D $14.00 65 Cutting labor 8 $12.00 66 Sewing labor 15 $16.00 67 Total 68 69 Manufacturing Overhead 70 Predetermined OH Rate DLH Used Total 71 72 73 Total Job Cost 74 Number of flags 60 75 Cost per flag 76 77 per DLH A B C D E G H 1 K L M N o $ $ $ $ 70 Predetermined OH Rate DLH Used Total 71 per DLH 72 73 Total Job Cost 74 Number of flags 60 75 Cost per flag 76 77 78 Part III. 79 Complete the following questions using your answers from Part I. and Part II. above: 80 1 Using your normal markup percent of 50% of cost, determine selling price per flag: 81 2 If you sold all but ten of the flags you made in the job above, total sales revenue would be: 82 3 If you sold all but ten of the flags you made in the job above, the cost of goods sold would be: 83 4 If you sold all but ten of the flags you made in the job above, your total gross profit would be: 84 Use the following to answer questions 5-7: 85 Assume you mistakenly treated the cost of production labor as a period cost (operating expense) 86 and you sold all but ten of the flags you made in the job above (for the same price calculated in #1). What is 87 resulting effect on the following financial statement elements ? 88 5 Assets Understated, Overstated, or No Effect 89 6 Cost of Goods Sold Understated, Overstated, or No Effect 90 7 Gross Profit Understated, Overstated, or No Effect 91 8 Assume that during the year, your production workers actually worked a total of 16,520 hours. 92 Manufacturing overhead allocated to all jobs during the year would be: 93 Use your answer in #8 and the following information to answer questions 9 and 10: 94 Assume that at year end it was determined that actual manufacturing overhead 95 totaled $83,200. 96 9 Manufacturing overhead would be: Overallocated or Underallocated 97 ## By how much? 98 Assume that the amount in #10 is not considered material and most of the flags have been 99 sold. 100 ## Which income statement account(s) would be adjusted for the overallocated or 101 underallocated overhead? 102 ## Would the account(s) be increased or decreased? Increase or Decrease 103 104 105 106 $