Managerial Accounting LEGO PROJECT Air Blazer (Model Number 31057) Instructions (Over) General Instructions A. You are the manufacturer of various flying equipment including the Air Blazer helicopter. The US Coast Guards has received a grant to replace 10 Air Blazers and has placed an order with you for the equipment. You must now do the following: 1. Complete the Job Cost Record to fill Job number 2200. 2. Answer the additional questions below on the job cost form. Use the current date as the start date. 3. Each Student Must Complete the Job Cost Record and Questions! B. Fill Out the Job Cost Record 1. For direct material amount to charge to the job please use the amount from the material inventory and price list (given) the price listed is the price for each piece or unit. The extended price is the price times the quantity used. a. Requisition Information: i. Requisition 10012-01 Based on price sheet. ii. Requisition 10012-02 Based on price sheet. iii. Requisition 10012-03 Based on price sheet. b. Hint: Determine the TOTAL direct material cost first then apply the necessary percentages as per the requisitions given above. 2. Direct labor is computed based on the following requirements. Using the time recorded to build the equipment as described above under assemble the equipment, calculate direct labor using the following data. a. Labor wage rate - $12.00/hour. b. Assume that each minute used to assemble the equipment equals two hours. (10 minutes = 20 hours) . (See the Job Cost Record for Actual Hours per Unit). c. Assume that 15 total direct labor workers worked on the job. 3. Manufacturing overhead is applied to the job by taking 160% of the total direct labor cost. 4. Actual Manufacturing Overhead is based on the following activities: a. Actual indirect material costs used - $42,550 b. Actual indirect labor used - $29,800 c. Other overhead cost incurred - $40,423 Managerial Accounting LEGO PROJECT Air Blazer (Model Number 31057) Instructions C. Discuss what you learned by completing the Job Cost Record and answering the following questions about this project. Please use the attached forms and complete one per group. 1) Record the journal entry for the purchase of all the raw materials for the Job, assuming you purchased only what you used and purchased on account. 2) Record the issuance of material to the job. 3) Record the direct labor cost used for the jobs. 4) Record the entry to apply the overhead 5) What is the journal Entry for the closing of the Manufacturing Overhead Account (make sure to show the details in a T-Account of the activity) 6) Prepare the Journal Entry for the sale of the trucks on account using perpetual inventory. The percent mark-up of sales over total Job Cost above = 18% 7) Prepare an income statement for the current month assuming this sale is the only activity for the month and assume that the operating expenses are a total of $250,000.00