You work for Thunderduck Custorn Tables inc. This is the fint month of operaticns. The company designs and manufactures Data 7 specialty tables. Each table is specially customized for the customer. This month, you have been asked to develop and manufacture two new tables for customers. You will design and buld the tables. The company does not have indirect materials. You will be keeping track of the costs incurred to manufacture the tables using Job \#1 Cost Sheet and Job th2 Cost Sheet. The cost of the direct materials that can be used to manufacture the table are as foliowi. Assume a 560 per hour wage rate to the assembly employees. The company uses a job order costing system and applies manufacturing overhead to jobs based on direct labor hours. The company estimates that there will be 120 direct labor hours worked during the month. The fixed estimated manufacturing overhead costs per month are: Total Estimated manufacturing overhead $8,400 1 Data 2 Data 3 Step 1 What is the predetermined overhead rate (POHR)? The first order you recelved was to manufacture a table using a table top and four legs. This is your Job 1. The customer that has ordered Job $2, wants a table that is the same as Job \#1, but wants to also add a drawer to the table. The following is a list of transactions that need to be recorded for the company for activity in the month of Decembet. Record those in the "General Joumal" tab of the excel file using the proper format. Please use the following accounts: 1-Dec Raw materials purchased on account, $27,000. 5-Dec All Raw materials needed for Job \#1 were requested from the material storage for use during the month, All materials are direct. (After you journalize this entry please enter the information into Job \#1 Cost Sheet) 10-Dec The following employee costs were incurred but not paid during the month: Direct labor for Job \#1, consibted of 60 hours at a rate of $60 per hour, totaling $3,600. (Afier you journalize this entry please enter the information into Job 11 Cost Sheet) Salary for supervisor of the factory $3,200. Administrative Salary $2,000 12-Dec Manufacturing overhead cost was applied based on drect labor hours to Job H1 using the POHR calculated in Question 1. (Ather you journalize this entry please enter the information into Job #1 Cost Sheel) 15-Dec All Raw materiais needed for Job 122 were requested from the material storage for use during the month. All materiais are direct. (After you journalize this entry please enter the information into Job #2 Cost Sheet) 16-Dec Rent for the month of December for the factory bulding incurred but not paid $1,300. 17-Dec Advertising costs incurred but not paid for the month was $1,600. 20-Dec Depreciation for the month of December was recorded on equipment $1.250 ( $950 for equipment used in the faciory and $300 for equipment used in selling and administrative activites). 20-Dec Depreciaton for the month of December was recorded on equipment $1,250 (\$950 for equipment used in the factory and 5390 for equipment used in selling and administrative activites) 24-Dec Property insurance incured but not paid $2,650 (\$2, 100 for the factory and $550 for soling and administrative offices): 26-Dec Job =1 was completed and translerted to Finished Goods during the month. 26-Dec The completed table was sold on account to the customer for $32,000 during the month. (Hint Make sure to account for the cost of the table that was sold using the cost from the job cost sheet.) 31-Dec By the end of the month, 30 hours of direct isbor were incurred at a rate of $60 per hou, totaling $1,800 to begn production on job i2. The employees will be paid next mont. (Afler you journalize the entry please enter the information into Job in Cost Sheet) 31-Dec.Manutacturing everhead cost was appled using the direct labor hours from Job 12 and the POHR calculated in Question 1 . (Ahor you joumalize this entry please enter the information into Job 12 Cost Sheet) sin2 Post the joumal entries that you recorded on the 'General Joumar tab to the "T-accounts (General Lodger) tab and calculate the balance for each account. This is the company's frst month of business, so there will not be any beginning balances. 31-Dec Record the entry in the general journal to dose the Manufacturing Overheod account and adjust for overapplediunderappled overhead, Step 3 Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold on the "Schedule of COGM and COGS" tab for Job 11 and Job in that wore worked on during the month by the company. Make suro to follow the format noled in your book (pg. 109). (Hint This is the companys first menth of operations and therefore the beginning balances will be zero) Step 4 Frepare an income Statement for the month ising the Tradional Format on the "income Statemenk" lab. step5 Use the following check figures and make any nocessary corrections Check Figure 1: Cost of Goods Manufactured $14,500 Check Figure 1: Cost of Goods Manufactured Check Figure 2: Net Operating income $14,500 $11,800 sin6 Answer the following additonal questions. Be sure to write all numbers as positve and no answer should be left blank 2 What is the ending balance for raw materials? 3 What is the ending balance for work in process? 4 What is the ending balance for finished goods? 5 What is the ending balance for accounts payable? 6 From the Schedule of Cost of Goods Manufactured, what are the raw materials used in production? 7 What is the actual manufacturing overhead cost incurred during December? 8 What is the total applied manulacturing overhead cost during December? 9 What is the unadjusted cost of goods sold? 10 Was the manufacturing overtiead for month December overapplied/underapplied? Enter eather. underapplied or overapplied. 11 What is the doliar amount of overapplied/underapplied manufacturing overhead? 12 What is the adjusted cost of goods sold? 13 What is the gross margin (in dollars) from the income statement? 14 What is the total prime cost from the Job il Cost Sheet? 15 What is the total conversion cost from the Job \#1 Cost Sheet? 16 What is the total product cost from the Job il Cost Sheet? 17. What was the period cost incurred for the month of December? 18. What is the contribution margin (in doliars) for Job 11 (assume that all selling and administrative cost and all manutacturing overhead costs are fixed.) 19. If joball was for five tables instead of one, what would be the total amount of variable cost recorded on Job it's cost sheet?? If the factory has the capacity to produce five tables each month, what would be the total actual 20 fixed manufacturing overhead cost (in dollars) incurred if five tables were produed instead of one? E You work for Thunderduck Custorn Tables inc. This is the fint month of operaticns. The company designs and manufactures Data 7 specialty tables. Each table is specially customized for the customer. This month, you have been asked to develop and manufacture two new tables for customers. You will design and buld the tables. The company does not have indirect materials. You will be keeping track of the costs incurred to manufacture the tables using Job \#1 Cost Sheet and Job th2 Cost Sheet. The cost of the direct materials that can be used to manufacture the table are as foliowi. Assume a 560 per hour wage rate to the assembly employees. The company uses a job order costing system and applies manufacturing overhead to jobs based on direct labor hours. The company estimates that there will be 120 direct labor hours worked during the month. The fixed estimated manufacturing overhead costs per month are: Total Estimated manufacturing overhead $8,400 1 Data 2 Data 3 Step 1 What is the predetermined overhead rate (POHR)? The first order you recelved was to manufacture a table using a table top and four legs. This is your Job 1. The customer that has ordered Job $2, wants a table that is the same as Job \#1, but wants to also add a drawer to the table. The following is a list of transactions that need to be recorded for the company for activity in the month of Decembet. Record those in the "General Joumal" tab of the excel file using the proper format. Please use the following accounts: 1-Dec Raw materials purchased on account, $27,000. 5-Dec All Raw materials needed for Job \#1 were requested from the material storage for use during the month, All materials are direct. (After you journalize this entry please enter the information into Job \#1 Cost Sheet) 10-Dec The following employee costs were incurred but not paid during the month: Direct labor for Job \#1, consibted of 60 hours at a rate of $60 per hour, totaling $3,600. (Afier you journalize this entry please enter the information into Job 11 Cost Sheet) Salary for supervisor of the factory $3,200. Administrative Salary $2,000 12-Dec Manufacturing overhead cost was applied based on drect labor hours to Job H1 using the POHR calculated in Question 1. (Ather you journalize this entry please enter the information into Job #1 Cost Sheel) 15-Dec All Raw materiais needed for Job 122 were requested from the material storage for use during the month. All materiais are direct. (After you journalize this entry please enter the information into Job #2 Cost Sheet) 16-Dec Rent for the month of December for the factory bulding incurred but not paid $1,300. 17-Dec Advertising costs incurred but not paid for the month was $1,600. 20-Dec Depreciation for the month of December was recorded on equipment $1.250 ( $950 for equipment used in the faciory and $300 for equipment used in selling and administrative activites). 20-Dec Depreciaton for the month of December was recorded on equipment $1,250 (\$950 for equipment used in the factory and 5390 for equipment used in selling and administrative activites) 24-Dec Property insurance incured but not paid $2,650 (\$2, 100 for the factory and $550 for soling and administrative offices): 26-Dec Job =1 was completed and translerted to Finished Goods during the month. 26-Dec The completed table was sold on account to the customer for $32,000 during the month. (Hint Make sure to account for the cost of the table that was sold using the cost from the job cost sheet.) 31-Dec By the end of the month, 30 hours of direct isbor were incurred at a rate of $60 per hou, totaling $1,800 to begn production on job i2. The employees will be paid next mont. (Afler you journalize the entry please enter the information into Job in Cost Sheet) 31-Dec.Manutacturing everhead cost was appled using the direct labor hours from Job 12 and the POHR calculated in Question 1 . (Ahor you joumalize this entry please enter the information into Job 12 Cost Sheet) sin2 Post the joumal entries that you recorded on the 'General Joumar tab to the "T-accounts (General Lodger) tab and calculate the balance for each account. This is the company's frst month of business, so there will not be any beginning balances. 31-Dec Record the entry in the general journal to dose the Manufacturing Overheod account and adjust for overapplediunderappled overhead, Step 3 Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold on the "Schedule of COGM and COGS" tab for Job 11 and Job in that wore worked on during the month by the company. Make suro to follow the format noled in your book (pg. 109). (Hint This is the companys first menth of operations and therefore the beginning balances will be zero) Step 4 Frepare an income Statement for the month ising the Tradional Format on the "income Statemenk" lab. step5 Use the following check figures and make any nocessary corrections Check Figure 1: Cost of Goods Manufactured $14,500 Check Figure 1: Cost of Goods Manufactured Check Figure 2: Net Operating income $14,500 $11,800 sin6 Answer the following additonal questions. Be sure to write all numbers as positve and no answer should be left blank 2 What is the ending balance for raw materials? 3 What is the ending balance for work in process? 4 What is the ending balance for finished goods? 5 What is the ending balance for accounts payable? 6 From the Schedule of Cost of Goods Manufactured, what are the raw materials used in production? 7 What is the actual manufacturing overhead cost incurred during December? 8 What is the total applied manulacturing overhead cost during December? 9 What is the unadjusted cost of goods sold? 10 Was the manufacturing overtiead for month December overapplied/underapplied? Enter eather. underapplied or overapplied. 11 What is the doliar amount of overapplied/underapplied manufacturing overhead? 12 What is the adjusted cost of goods sold? 13 What is the gross margin (in dollars) from the income statement? 14 What is the total prime cost from the Job il Cost Sheet? 15 What is the total conversion cost from the Job \#1 Cost Sheet? 16 What is the total product cost from the Job il Cost Sheet? 17. What was the period cost incurred for the month of December? 18. What is the contribution margin (in doliars) for Job 11 (assume that all selling and administrative cost and all manutacturing overhead costs are fixed.) 19. If joball was for five tables instead of one, what would be the total amount of variable cost recorded on Job it's cost sheet?? If the factory has the capacity to produce five tables each month, what would be the total actual 20 fixed manufacturing overhead cost (in dollars) incurred if five tables were produed instead of one? E
