Overall Instructor remarks: Check Figures 1d) dr. WIP 370000 cr.MOH 370000 3b) Budgeted OH $355,200 4c) OH for ZF14 $74.000 5b) 399.644 8 Inspection for BY92 1,421 8 Total OH applied for ZF14 $52,521 9f Gross Margin % for JV28 35.79% 12 OH cost per unit 46.67 12f Sales price per unit $247.56 ) for Job JV28 Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials) $ 215,000 $ 268,000 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 154,000 $ 370,000 $ 351,000 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of Year End of Year $ 58,000 $ 30,000 $ 32,000 $ 35,000 ? ? The total manufacturing costs for the year were $685,000; the cost of goods available for sale totaled $735,000; the unadjusted cost of goods sold totaled $664,000; and the net operating income was $31,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold. 4) Traditional Job Costing: Superior Company's business includes three large jobs, JV28, BY92 and ZF14. While these jobs are in process, their costs are accumulated in WIP inventory account. Once a job is completed, all the costs accumulated to date are transferred to Finished Goods Inventory and then COGS when they are sold. These are the JEs represented in le tolg above. Use the following calculations to complete the Jobs Report provided below (on page 5 of the Project). Remember to show your work for partial credit. a) Direct Material: Job JV28 used 40% of the company's Direct Material (amount from JE 1b), Job BY92 used 12% and Job ZF14 use 22% the company's Direct Material. Use these percentages and calculate the Direct Material for each job. Include these amounts in the table below. The combined total for the three jobs WILL NOT agree to the total costs because Superior has other jobs they sold as well as jobs that are still in inventory. Include these amounts in the Jobs Report below. Job JV28 Job BY92 Total DM % used by job DM per job Job ZF14 From JE lb above 22% Given above Calculate (multiply) 40% 12% b) Direct Labor: 35% of the company's actual Direct Labor hours were spent on Job JV28. Job BY92 used 18% and Job ZF14 used 20% of the Direct Labor hours. Use these percentages and calculate the Direct Material for each job. Include these amounts in the table below. Job JV28 Job BY92 Job ZF14 Total DL From JE 1c above % used by job 35% 18% 20% Given above DL per job Calculate (multiply) c) Because overhead was applied using a plantwide predetermined rate based on direct labor hours, the overhead can be allocated using the same percentages used in b) above to allocate direct labor costs. Determine the overhead dollars for each job and include the amounts in the Jobs Report below for Overhead. Job JV28 Job BY92 Total applied OH % used by job OH per job Job ZF14 From JE Id above 20% From 4b above Calculate (multiply) 35% 18% d) Determine the total job costs by adding DM, DL and OH for each job in the Jobs Report below. (Add DM, DL and OH together). 5) Assume Superior uses the same Mark-up percentage to set the sales revenue amount for each job. a) Using the Sales Revenue and Unadjusted COGS calculate the Mark-up percent of total costs used. Sales Revenue Unadjusted COGS Mark-up % (a) (b) (a) (b) From JE 1f From JE 1g Calculate (divide) s/b over 100% 4 b) Use the total job costs for each job calculated in 4d) with the mark-up percentage calculated in 5a) to calculate the revenue for each job. Include these amounts in the Jobs Report below. Calculate as total job cost times mark-up percent. Job JV28 Job BY92 Job ZF14 Total job costs Mark-up % Sales revenue per job from Jobs report below from 5a) Calculate (multiply) c) Calculate the Gross Margin by subtracting total job costs from Sales Revenue. Note - The total Gross Margin will not agree with the Income Statement from CONNECT due to the over/under applied overhead as well as this Job Report does not include all the jobs for Superior during the period. d) Calculate Gross Margin percent as gross margin divided by sales revenue in the Jobs Report below. Superior Company Jobs Report - Traditional OH allocation (Direct Labor Hours) Year Ending December 31 JV28 BY92 ZF14 Reference From 5b) Sales Revenue Job Costs: Direct Material Direct Labor Overhead Total Job Costs Gross Margin From 4a) From 4b) From 40) Calculate for 4d) Calculate for 5c) Gross Margin % Calculate for 5d) 6) Use the traditional Jobs Report you completed to answer the following questions. Make sure your explanations are 10 to 20 words and are in complete sentences. a) Superior Company is finding it difficult to sell BY92. Does this Job Report provide any information that would assist in explaining the slump in sales? Why or why not? b) Should management have any preference about which job is sells more of? Why or why not? Overall Instructor remarks: Check Figures 1d) dr. WIP 370000 cr.MOH 370000 3b) Budgeted OH $355,200 4c) OH for ZF14 $74.000 5b) 399.644 8 Inspection for BY92 1,421 8 Total OH applied for ZF14 $52,521 9f Gross Margin % for JV28 35.79% 12 OH cost per unit 46.67 12f Sales price per unit $247.56 ) for Job JV28 Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials) $ 215,000 $ 268,000 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 154,000 $ 370,000 $ 351,000 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of Year End of Year $ 58,000 $ 30,000 $ 32,000 $ 35,000 ? ? The total manufacturing costs for the year were $685,000; the cost of goods available for sale totaled $735,000; the unadjusted cost of goods sold totaled $664,000; and the net operating income was $31,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold. 4) Traditional Job Costing: Superior Company's business includes three large jobs, JV28, BY92 and ZF14. While these jobs are in process, their costs are accumulated in WIP inventory account. Once a job is completed, all the costs accumulated to date are transferred to Finished Goods Inventory and then COGS when they are sold. These are the JEs represented in le tolg above. Use the following calculations to complete the Jobs Report provided below (on page 5 of the Project). Remember to show your work for partial credit. a) Direct Material: Job JV28 used 40% of the company's Direct Material (amount from JE 1b), Job BY92 used 12% and Job ZF14 use 22% the company's Direct Material. Use these percentages and calculate the Direct Material for each job. Include these amounts in the table below. The combined total for the three jobs WILL NOT agree to the total costs because Superior has other jobs they sold as well as jobs that are still in inventory. Include these amounts in the Jobs Report below. Job JV28 Job BY92 Total DM % used by job DM per job Job ZF14 From JE lb above 22% Given above Calculate (multiply) 40% 12% b) Direct Labor: 35% of the company's actual Direct Labor hours were spent on Job JV28. Job BY92 used 18% and Job ZF14 used 20% of the Direct Labor hours. Use these percentages and calculate the Direct Material for each job. Include these amounts in the table below. Job JV28 Job BY92 Job ZF14 Total DL From JE 1c above % used by job 35% 18% 20% Given above DL per job Calculate (multiply) c) Because overhead was applied using a plantwide predetermined rate based on direct labor hours, the overhead can be allocated using the same percentages used in b) above to allocate direct labor costs. Determine the overhead dollars for each job and include the amounts in the Jobs Report below for Overhead. Job JV28 Job BY92 Total applied OH % used by job OH per job Job ZF14 From JE Id above 20% From 4b above Calculate (multiply) 35% 18% d) Determine the total job costs by adding DM, DL and OH for each job in the Jobs Report below. (Add DM, DL and OH together). 5) Assume Superior uses the same Mark-up percentage to set the sales revenue amount for each job. a) Using the Sales Revenue and Unadjusted COGS calculate the Mark-up percent of total costs used. Sales Revenue Unadjusted COGS Mark-up % (a) (b) (a) (b) From JE 1f From JE 1g Calculate (divide) s/b over 100% 4 b) Use the total job costs for each job calculated in 4d) with the mark-up percentage calculated in 5a) to calculate the revenue for each job. Include these amounts in the Jobs Report below. Calculate as total job cost times mark-up percent. Job JV28 Job BY92 Job ZF14 Total job costs Mark-up % Sales revenue per job from Jobs report below from 5a) Calculate (multiply) c) Calculate the Gross Margin by subtracting total job costs from Sales Revenue. Note - The total Gross Margin will not agree with the Income Statement from CONNECT due to the over/under applied overhead as well as this Job Report does not include all the jobs for Superior during the period. d) Calculate Gross Margin percent as gross margin divided by sales revenue in the Jobs Report below. Superior Company Jobs Report - Traditional OH allocation (Direct Labor Hours) Year Ending December 31 JV28 BY92 ZF14 Reference From 5b) Sales Revenue Job Costs: Direct Material Direct Labor Overhead Total Job Costs Gross Margin From 4a) From 4b) From 40) Calculate for 4d) Calculate for 5c) Gross Margin % Calculate for 5d) 6) Use the traditional Jobs Report you completed to answer the following questions. Make sure your explanations are 10 to 20 words and are in complete sentences. a) Superior Company is finding it difficult to sell BY92. Does this Job Report provide any information that would assist in explaining the slump in sales? Why or why not? b) Should management have any preference about which job is sells more of? Why or why not