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Assignment 1 Is GATSBY MANUFACTURING INC. a multi-product company producing products that are unique in character and distinguishable from each other? How many segments or product lines do they produce? What are their cost objects? Does Gatsby use a process costing or job-order costing system? What type of product cost might cause a job to cost more per pair of jeans than other jobs? Complete the Job Cost Sheets (in the Documents Folder or in Student Excel Template) based on the December 2019 Transaction List in the Document Folder that relate to manufacturing product cost information. Enter transactions from December 2019 in the T-accounts (at the end of this bookl or in Student Excel Template) that represent inventory and cost accounts in the General Ledger and mixed the allocation ba! Milgament 1 Predetermined MOH rate= barrels of oil, gallons of milk, Estimde The predetermined rate is computed at the bey companies use one plant-wide allocation base, such as dll direct labor cost. When a single plant-wide predetermined MOH/ it is used to calculate MOH to be applied to eachjob cost sheet based on the allocation base that each job used. Applied MOH is a charge to the job cost shell work-in-process inventory) as the costs are shifted from the manufacturing overhea account atherobreder which pro producunda aya roat CORE CONCEPT REVIEW-Job-Order Costing Det holdturneratave A cost object can be a product line, a process, or to cost object is crucial for any business, whether a Information related to manufacturing process or job-order. If a product is Samples of a job-order costing environment are fucris unique in character and distinguishable for each futbol movie production, and custom clothing eader for bat outje the company may produce thousands of these, but this job Ajati come lots would bey use job-order costing in which one job could throuched to the res penerated from the client to determine if a profit or loss results, different them to stayleg jeans or men's size 34 stone washed jeans. Costs are is most och fler comoms CORE CONCEPT REVIEW-Source Documents and Internal Source documents refer to the record Wher Alternatiek jaban be tied to customers information about a transaction. Hi were paper forms with multi-colored copies that could be distributed to responsible for various activities in the company. Today, even the smallest com type of electronic system to record necessary information to support transac the accounting information system. Input screens in an electronic system paper copies in that they capture the same necessary information about at A company's internal control system is designed to minimize risks and ens financial reporting, in addition to effective and efficient operations and and regulations. Source documents play a critical role in assuring that in correctly at the initial and subsequent steps in the business process. Inte evidenced in source documents include 1) sequentially numbered docu copies, 2) validity checks to be sure numbers add up and are reasona responsible parties for the transaction. Segregating the duties of empl Pas CORE CONCEPT REVIEW - Product and Period Costs costs are categorised into product costs and period costs. The three components of a prod- ucts cast are al raw materials that are requisitioned from the warehouse by the factory man ager (and from then on are called direct materials as they can be directly traced to jobs)2) direct labor which the costolemployees working directly with the production process, and 3) manufacturing overhead, which are those indirect costs that are critical to manufacturing the product but not easily traced to it such as factory equipment costs, factory supervisor salaries, factory building ocupancy costs and indirect supplies web provide checks and balances, although a challenge in a small compa that one person could initiate a purchase and receive the goods but the accounting system one of these product costs have been added to a job but the job is not yet completed, they comprise work in process inventory at the end of the period. Jobs that are completed are moved from work in process inventory to finished goods inventory, Raw materials, work-in- process and finished goods are all inventory control accounts in the General Ledger Job cost sheetssene 253 * as a subsidiary ledger to support the control accounts of work-in-process, finished poods inventory and cost of goods sold Accountants reconcile control accounts at the end of in turting period to be certain that the subsidiary accounts and control accounts match Product tests are debered on the balance sheet as inventory until sold, at which point these costs are reflected on the income statement as cost of goods sold and matched with sales. land administrative (C&A) expenses that are charged off to period costs include depreciation, interest, alance is of Dena 33 Mah Assignment 1 porchete CORE CONCEPT REVIEW - Applying Manufacturing Overhead Manufacturing overhead (MOH) is applied to jobs using a predetermined overhead rate as jobs move through the production process. The cost of MOH for the coming year is estimated based on past experience of overhead costs and any other information the company has about changes in costs and the behavior of costs with different levels of activity (i.e., fixed, variable, and mixed costs). Estimated MOH for the coming year is divided by a driver of that cost (called the allocation base). The formula is: Estimated total manufacturing overhead cost for the year Estimated total amount of the allocation base for the year s Predetermined MOH rate ch re The predetermined rate is computed at the beginning of the period. For simplicity, many companies use one plant-wide allocation base, such as direct labor hours, machine hours, or direct labor cost. When a single plant-wide predetermined MOH rate has been determined, uld job are ults is used to calculate MOH to be applied to each job cost sheet based on the actual level of the allocation base that each job used. Applied MOH is a charge to the job cost sheet (and to work-in-process inventory) as the costs are shifted from the manufacturing overhead control account 1-Source Documents and Internal Contorols jon. Historically these Learning Objectives ASICAMENT 1 - Reconcile caring related inventory betrece sediary sheets and trace tracts documents ROCREMENTS nie the low cost Sheets in the Document Folder Look at the sum de materials, direct labor, and facturing overhead that have been charged to jobs as of November Cone Concept Job Order Costa Product and Period Cox Applying Manufacturing Overhead Source Documents and interna Controls 2 Review the Source Documents from the Documents Folder that relate to Jobs in work in process or finished poods inventory as of November 30, 2019 Review the Transactions List for December 2019 in the Documents Folder. Highlight the transactions that relate to manufacturing product costs. Examine the Cost Sheet on page 10 of the Gatsby's Accounting System and Policies section to understand how much more costs it will take to complete the jobs in work in process inventory at November 30, 2019. & Complete the worksheet below by accounting for all the jobs in beginning work-in- process or finished goods inventory at December 1, 2019. Refer to the Job Cost Sheets o the Documents Folder, then add any new jobs started in December as seen in the Transactions List November 2019 (indicate started December 2019 (indicate started, Assignment 1 Is GATSBY MANUFACTURING INC. a multi-product company producing products that are unique in character and distinguishable from each other? How many segments or product lines do they produce? What are their cost objects? Does Gatsby use a process costing or job-order costing system? What type of product cost might cause a job to cost more per pair of jeans than other jobs? Complete the Job Cost Sheets (in the Documents Folder or in Student Excel Template) based on the December 2019 Transaction List in the Document Folder that relate to manufacturing product cost information. Enter transactions from December 2019 in the T-accounts (at the end of this bookl or in Student Excel Template) that represent inventory and cost accounts in the General Ledger and mixed the allocation ba! Milgament 1 Predetermined MOH rate= barrels of oil, gallons of milk, Estimde The predetermined rate is computed at the bey companies use one plant-wide allocation base, such as dll direct labor cost. When a single plant-wide predetermined MOH/ it is used to calculate MOH to be applied to eachjob cost sheet based on the allocation base that each job used. Applied MOH is a charge to the job cost shell work-in-process inventory) as the costs are shifted from the manufacturing overhea account atherobreder which pro producunda aya roat CORE CONCEPT REVIEW-Job-Order Costing Det holdturneratave A cost object can be a product line, a process, or to cost object is crucial for any business, whether a Information related to manufacturing process or job-order. If a product is Samples of a job-order costing environment are fucris unique in character and distinguishable for each futbol movie production, and custom clothing eader for bat outje the company may produce thousands of these, but this job Ajati come lots would bey use job-order costing in which one job could throuched to the res penerated from the client to determine if a profit or loss results, different them to stayleg jeans or men's size 34 stone washed jeans. Costs are is most och fler comoms CORE CONCEPT REVIEW-Source Documents and Internal Source documents refer to the record Wher Alternatiek jaban be tied to customers information about a transaction. Hi were paper forms with multi-colored copies that could be distributed to responsible for various activities in the company. Today, even the smallest com type of electronic system to record necessary information to support transac the accounting information system. Input screens in an electronic system paper copies in that they capture the same necessary information about at A company's internal control system is designed to minimize risks and ens financial reporting, in addition to effective and efficient operations and and regulations. Source documents play a critical role in assuring that in correctly at the initial and subsequent steps in the business process. Inte evidenced in source documents include 1) sequentially numbered docu copies, 2) validity checks to be sure numbers add up and are reasona responsible parties for the transaction. Segregating the duties of empl Pas CORE CONCEPT REVIEW - Product and Period Costs costs are categorised into product costs and period costs. The three components of a prod- ucts cast are al raw materials that are requisitioned from the warehouse by the factory man ager (and from then on are called direct materials as they can be directly traced to jobs)2) direct labor which the costolemployees working directly with the production process, and 3) manufacturing overhead, which are those indirect costs that are critical to manufacturing the product but not easily traced to it such as factory equipment costs, factory supervisor salaries, factory building ocupancy costs and indirect supplies web provide checks and balances, although a challenge in a small compa that one person could initiate a purchase and receive the goods but the accounting system one of these product costs have been added to a job but the job is not yet completed, they comprise work in process inventory at the end of the period. Jobs that are completed are moved from work in process inventory to finished goods inventory, Raw materials, work-in- process and finished goods are all inventory control accounts in the General Ledger Job cost sheetssene 253 * as a subsidiary ledger to support the control accounts of work-in-process, finished poods inventory and cost of goods sold Accountants reconcile control accounts at the end of in turting period to be certain that the subsidiary accounts and control accounts match Product tests are debered on the balance sheet as inventory until sold, at which point these costs are reflected on the income statement as cost of goods sold and matched with sales. land administrative (C&A) expenses that are charged off to period costs include depreciation, interest, alance is of Dena 33 Mah Assignment 1 porchete CORE CONCEPT REVIEW - Applying Manufacturing Overhead Manufacturing overhead (MOH) is applied to jobs using a predetermined overhead rate as jobs move through the production process. The cost of MOH for the coming year is estimated based on past experience of overhead costs and any other information the company has about changes in costs and the behavior of costs with different levels of activity (i.e., fixed, variable, and mixed costs). Estimated MOH for the coming year is divided by a driver of that cost (called the allocation base). The formula is: Estimated total manufacturing overhead cost for the year Estimated total amount of the allocation base for the year s Predetermined MOH rate ch re The predetermined rate is computed at the beginning of the period. For simplicity, many companies use one plant-wide allocation base, such as direct labor hours, machine hours, or direct labor cost. When a single plant-wide predetermined MOH rate has been determined, uld job are ults is used to calculate MOH to be applied to each job cost sheet based on the actual level of the allocation base that each job used. Applied MOH is a charge to the job cost sheet (and to work-in-process inventory) as the costs are shifted from the manufacturing overhead control account 1-Source Documents and Internal Contorols jon. Historically these Learning Objectives ASICAMENT 1 - Reconcile caring related inventory betrece sediary sheets and trace tracts documents ROCREMENTS nie the low cost Sheets in the Document Folder Look at the sum de materials, direct labor, and facturing overhead that have been charged to jobs as of November Cone Concept Job Order Costa Product and Period Cox Applying Manufacturing Overhead Source Documents and interna Controls 2 Review the Source Documents from the Documents Folder that relate to Jobs in work in process or finished poods inventory as of November 30, 2019 Review the Transactions List for December 2019 in the Documents Folder. Highlight the transactions that relate to manufacturing product costs. Examine the Cost Sheet on page 10 of the Gatsby's Accounting System and Policies section to understand how much more costs it will take to complete the jobs in work in process inventory at November 30, 2019. & Complete the worksheet below by accounting for all the jobs in beginning work-in- process or finished goods inventory at December 1, 2019. Refer to the Job Cost Sheets o the Documents Folder, then add any new jobs started in December as seen in the Transactions List November 2019 (indicate started December 2019 (indicate started