Mississauga Fumitare Company produces custom fumiture for walk-in customers. Products include coffee tables, shelving units, bookshelf and hutches and can be constructed with either pine or oak. Custom Kitchen cabinetry and installation will also be considered during the slower Winter season. The company is owned and operated by Linda Roberts, who has one full-time carpentier working for her. Linda has worked in the industry for many years and has just started the company. Currently, for customer pricing inquiries, Linda prerrides a quote based on her best estimate and years of experience in the business and applies a 50% markup on cost Linda's daughter Lidia has retumed home for the summer after completing her first semester of an accounting program Lidia described to Linda the benefits of a job-order costing system to track costs and as a basis for quoting sales prices to prospective customers. Linde believes she could use her cost accounting system in her new business and set aside a few hours to collect and generate the following estimated data: Monthly Estimates Direct materials - kiln dried pine 527/beard for Direct materials - kiln driedok S18 board foot Director $20.50 hour Direct labour hours 70 Depreciation production equipment SI 270 Utilities SSIR Other materials 344 Weed shipping cost Rent production space $1,670 Rent sales and administrative space S1 S10 Salar-sales and administrative $1.30 Linda has received customer enquiries for price quotes: one is for 3 pine bookshelf and the second is for 12 coffee tables made with a Linda has generated the following estimates Job - Bookshelf Job ? - Coffee Table Direct materials 22 heard feet Pine 36 board feet - Oak Direct the hours 28 At the end of the month, Linda collected the following actual data after completing Jobs. 1 and 2 End-of-month actual data Depreciation production equipment 51,11 Utilities Rent-production space 670 Rent sales and ministrative space 1.360 Other materials 274 Wood shipping cost 186 Salaries Sales and Administrative 1.567 Raw materials inventory-inning 46 Raw materials inventory 320 Actual material usage and labour ratchours quals 1.inda's estimate Required: 1. Assume it is the beginning of the month, using the estimates and a job-onder costing system, what price would you recommend Linda quote for each of the above two jobs to ensure profitability in the long term 2. Assume it is the end of the month, determine the amount of under or over-applied overhead and recommend to Linda how the amount should be accounted for 3. Prepare a schedule of cost of goods manufactured for the month - these were the only two jobs started and soldirere beginning and ending work-in-process inventory) Assume that actual materials used and the labour rate hours are the same as estimated Hint refer to Exhibit S.11 on page 213 of text for suggested format Other materials 274 Wood shipping cost 386 Salaries Sales and Administrative 1,567 Raw materials inventory - beginning 346 Raw materials inventory - ending 320 Actual material usage and labour rate/hours equals Linda's estimate Required: 1. Assume it is the beginning of the month, using the estimates and a job-order costing system, what price would you recommend Linda quote for each of the above two jobs to ensure profitability in the long term? 2. Assume it is the end of the month, determine the amount of under-or over-applied overhead and recommend to Linda how the amount should be accounted for. 3. Prepare a schedule of cost of goods manufactured for the month - these were the only two jobs started and sold (zero beginning and ending work-in-process inventory). Assume that actual materials used and the labour rate/hours are the same as estimated. Hint: refer to Exhibit 5.11 on page 213 of text for suggested format. Mississauga Furniture Company produces custom furniture for walk-in customers. Products include coffee tables, shelving units, bookshelf, and hutches and can be constructed with either pine or oak. Custom kitchen cabinetry and installation will also be considered during the slower winter season. The company is owned and operated by Linda Roberts, who has one full-time carpenter working for her. Linda has worked in the industry for many years and has just started the company. Currently, for customer pricing inquiries, Linda provides a quote based on her best estimate and years of experience in the business and applies a 50% markup on cost. Linda's daughter Lidia has returned home for the summer after completing her first semester of an accounting program. Lidia described to Linda the benefits of a job-order costing system to track costs and as a basis for quoting sales prices to prospective customers. Linda believes she could use her cost accounting system in her new business and sets aside a few hours to collect and generate the following estimated data: Monthly Estimates: Direct materials - kiln dried pine $27/board foot Direct materials - kiln dried oak $38/board foot Direct labour S20.50/hour Direct labour hours 70 Depreciation - production equipment $1,270 Utilities $518 Other materials 344 Wood shipping cost 256 Rent - production space $1,670 Rent - sales and administrative space $1,510 Salaries - sales and administrative $1,820 Linda has received customer enquiries for price quotes: one is for 3 pine bookshelf and the second is for 12 coffee tables made with oak. Linda has generated the following estimates: Job 1 - Bookshelf Job 2 - Coffee Table Direct materials 22 board feet - Pine 36 board feet - Oak Direct labour hours 28 42 At the end of the month, Linda collected the following actual data after completing Jobs 1 and 2. End-of-month actual data: Depreciation - production equipment $1,138 Utilities 1,576 Rent - production space Rent - sales and administrative space 1,360 670 Mississauga Fumitare Company produces custom fumiture for walk-in customers. Products include coffee tables, shelving units, bookshelf and hutches and can be constructed with either pine or oak. Custom Kitchen cabinetry and installation will also be considered during the slower Winter season. The company is owned and operated by Linda Roberts, who has one full-time carpentier working for her. Linda has worked in the industry for many years and has just started the company. Currently, for customer pricing inquiries, Linda prerrides a quote based on her best estimate and years of experience in the business and applies a 50% markup on cost Linda's daughter Lidia has retumed home for the summer after completing her first semester of an accounting program Lidia described to Linda the benefits of a job-order costing system to track costs and as a basis for quoting sales prices to prospective customers. Linde believes she could use her cost accounting system in her new business and set aside a few hours to collect and generate the following estimated data: Monthly Estimates Direct materials - kiln dried pine 527/beard for Direct materials - kiln driedok S18 board foot Director $20.50 hour Direct labour hours 70 Depreciation production equipment SI 270 Utilities SSIR Other materials 344 Weed shipping cost Rent production space $1,670 Rent sales and administrative space S1 S10 Salar-sales and administrative $1.30 Linda has received customer enquiries for price quotes: one is for 3 pine bookshelf and the second is for 12 coffee tables made with a Linda has generated the following estimates Job - Bookshelf Job ? - Coffee Table Direct materials 22 heard feet Pine 36 board feet - Oak Direct the hours 28 At the end of the month, Linda collected the following actual data after completing Jobs. 1 and 2 End-of-month actual data Depreciation production equipment 51,11 Utilities Rent-production space 670 Rent sales and ministrative space 1.360 Other materials 274 Wood shipping cost 186 Salaries Sales and Administrative 1.567 Raw materials inventory-inning 46 Raw materials inventory 320 Actual material usage and labour ratchours quals 1.inda's estimate Required: 1. Assume it is the beginning of the month, using the estimates and a job-onder costing system, what price would you recommend Linda quote for each of the above two jobs to ensure profitability in the long term 2. Assume it is the end of the month, determine the amount of under or over-applied overhead and recommend to Linda how the amount should be accounted for 3. Prepare a schedule of cost of goods manufactured for the month - these were the only two jobs started and soldirere beginning and ending work-in-process inventory) Assume that actual materials used and the labour rate hours are the same as estimated Hint refer to Exhibit S.11 on page 213 of text for suggested format Other materials 274 Wood shipping cost 386 Salaries Sales and Administrative 1,567 Raw materials inventory - beginning 346 Raw materials inventory - ending 320 Actual material usage and labour rate/hours equals Linda's estimate Required: 1. Assume it is the beginning of the month, using the estimates and a job-order costing system, what price would you recommend Linda quote for each of the above two jobs to ensure profitability in the long term? 2. Assume it is the end of the month, determine the amount of under-or over-applied overhead and recommend to Linda how the amount should be accounted for. 3. Prepare a schedule of cost of goods manufactured for the month - these were the only two jobs started and sold (zero beginning and ending work-in-process inventory). Assume that actual materials used and the labour rate/hours are the same as estimated. Hint: refer to Exhibit 5.11 on page 213 of text for suggested format. Mississauga Furniture Company produces custom furniture for walk-in customers. Products include coffee tables, shelving units, bookshelf, and hutches and can be constructed with either pine or oak. Custom kitchen cabinetry and installation will also be considered during the slower winter season. The company is owned and operated by Linda Roberts, who has one full-time carpenter working for her. Linda has worked in the industry for many years and has just started the company. Currently, for customer pricing inquiries, Linda provides a quote based on her best estimate and years of experience in the business and applies a 50% markup on cost. Linda's daughter Lidia has returned home for the summer after completing her first semester of an accounting program. Lidia described to Linda the benefits of a job-order costing system to track costs and as a basis for quoting sales prices to prospective customers. Linda believes she could use her cost accounting system in her new business and sets aside a few hours to collect and generate the following estimated data: Monthly Estimates: Direct materials - kiln dried pine $27/board foot Direct materials - kiln dried oak $38/board foot Direct labour S20.50/hour Direct labour hours 70 Depreciation - production equipment $1,270 Utilities $518 Other materials 344 Wood shipping cost 256 Rent - production space $1,670 Rent - sales and administrative space $1,510 Salaries - sales and administrative $1,820 Linda has received customer enquiries for price quotes: one is for 3 pine bookshelf and the second is for 12 coffee tables made with oak. Linda has generated the following estimates: Job 1 - Bookshelf Job 2 - Coffee Table Direct materials 22 board feet - Pine 36 board feet - Oak Direct labour hours 28 42 At the end of the month, Linda collected the following actual data after completing Jobs 1 and 2. End-of-month actual data: Depreciation - production equipment $1,138 Utilities 1,576 Rent - production space Rent - sales and administrative space 1,360 670