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Question 8)

Question 8 Red Fire Inc. produces fire trucks. The company uses a normal job-order costing system to calculate its cost of goods manufactured. The company's policy is to price its job at cost plus 30% markup. On January 1, 2020, there was only one job in process, with the following costs: Direct materials Direct labour Applied overhead Total Job 200 $14,500 18,000 27,000 $59,500 The following balances were taken from the company's general ledger as of January 1, 2020: Direct materials inventory Finished goods inventory (for Job 100) $45,400 85,500 During the year 2020, the following events occurred: Direct materials were purchased on account for $379,000 Two more jobs were started: Job 300 and Job 400. Direct materials and direct labour costs incurred by each job in process during the year 2020 were as follows: Direct materials Direct labour Job 200 $150,800 134,800 Job 300 $45,400 45.400 Job 400 $36,000 25,600 The company incurred the following actual factory overhead during the year: Factory rent Factory supplies Indirect labour $135,000 55,200 84,750 Jobs 100 and 200 were sold. Jobs 200 and 300 were completed. Calculate the total applied overhead for the year 2020. The factory overhead costs are applied to each job on the basis of direct labour dollars. Total overhead applied S Prepare simple job cost sheets for jobs 200, 300, and 400 for the year ended December 31, 2020. Job No. 200 Total Revenue Cost of completed job Direct materials Direct labour Manufacturing overhead Total cost Job No. 300 Job No. 400 Prepare simple job cost sheets for jobs 200, 300, and 400 for the year ended December 31, 2020. Job No. 200 Direct materials Cost of completed job Manufacturing overhead Total Revenue Direct labour Total cost Job No. 300 Job No. 400 Determine whether the overhead is over-applied or under-applied. By how much? Manufacturing overhead applied: Overhead incurred during the month Manufacturing overhead applied overhead S Under-applied Over applied Prepare a schedule of cost of goods sold, identifying both normal and adjusted cost of goods sold, for the year ended December 31, 2020. RED FIRE INC. Statement of Cost of Goods Sold For the Year Ended December 31, 2020 Cost of goods available for sale Cost of goods manufactured Unadjusted cost of goods sold Finished goods inventory, January 1 Under-applied overhead Finished goods, December 31 Over-applied overhead Adjusted cost of goods sold Operating expenses LINK TO TEXT Prepare a schedule of cost of goods sold, identifying both normal and adjusted cost of goods sold, for the year ended December 31, 2020. RED FIRE INC. Statement of Cost of Goods Sold For the Year Ended December 31, 2020 S Less Add LINK TO TEXT Calculate the selling price of Job 200. Selling price of Job 200 S LINK TO TEXT Calculate the ending balances as of December 31, 2020, for the following accounts: Direct Materials and Work in Process. Direct materials S Work in process S