Please only answer steps 5 through 8 as Chegg ibly allows for 4 questions tk he asked per post.
Answer to Step 1
Answer to Step 2
Answer to Step 3
Answer to Step 4
Step 1 You work for Thunderduck Custom Tables Inc. This is the first month of operations. The company designs and manufactures 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 build the tables. This is a no nail, no screw, and no glue manufacturing (no indirect materials used). You will be keeping track of the costs incurred to manufacture the tables using Job #1 Cost Sheet and Job #2 Cost Sheet The cost of the direct materials that can be used to manufacture the table are as follows. These cost are on a per unit basis. Table Top $1,800.00 Table Leg $550.00 Drawer $380.00 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 12 direct labor hours worked during the month. The estimated manufacturing overhead cost for the month is: a. Factory supervisor salary per month $4,000.00 b. Rent for the factory per month c Depreciation of factory equipment per month $600.00 Total Estimated manufacturing overhead $6,000.00 $1,400.00 What is the predetermined manufacturing overhead rate? $500 Step 2 The first order you received was to manufacture a table using a table top and four legs. This is your job 1. Step 3 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. Step 4 The following is a list of transactions that need to be recorded for the company for activity in the month of December. Record those in the "General Journal" tab of the excel file using the proper format. Please use the following accounts: Accounts Receivables, Raw materials, Work in process, Finished goods, Accumulated depreciation, Accounts payable, Salaries and wages payable, Sales revenue, Manufacturing overhead, Cost of goods sold, Salaries and wages expense, Advertising expenses, and Depreciation expense. 1-Dec 5-Dec 10-Dec 15-Dec Raw Materials purchased on account, $18,000. All Raw Materials needed for Job #1 were requisitioned from the material storage for use during the month. Assume all materials are direct. (After you journalize this entry please enter the information into Job #1 Cost Sheet) The following employee costs were incurred but not paid during the month: There are three assembly employees that spend 2 hours each, $20 per hour to make the table for Job #1. (After you journalize this entry please enter the information into Job #1 Cost Sheet) Salary for supervisor of the factory $4,500. Administrative Salary $2,000. All Raw Materials needed for Job #2 were requisitioned from the material storage for use during the month. Assume all materials are direct. (After you journalize this entry please enter the information into Job #2 Cost Sheet) Rent for the month of December for the factory building incurred but not paid $1,400. Advertising costs incurred but not paid for the month was $1,600. Depreciation for the month of December was recorded on equipment was $750 ($150 for equipment used in the factory and the remainder for equipment used in selling and administrative activities). Manufacturing overhead cost was applied based on direct labor hours to Job #1 based on the POHR determined on the job Cost Sheet". After you journalize this entry please enter the information into Job #1 Cost Sheet) Job #1 was completed and transferred to Finished Goods during the month. 16-Dec 17-Dec 20-Dec 22-Dec 26-Dec 28-Dec The completed table from Job #1 was sold on account to the customer for $23,000 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 Direct labor cost incurred but not paid for three employees to start manufacturing Job W2. The employees only worked one hour each, three hours total, $20 per hour during the month and they did not complete their work on the job. (After you journalize this entry please enter the information into Job #2 Cost Sheet) 31-Dec Manufacturing overhead cost was applied based on direct labor hours to Job #2 based on the POHR. Only three direct labor hours were worked on Job #2 during the month. (After you journalize this entry please enter the information into Job #2 Cost Sheet) 31-Dec Any underapplied or overapplied overhead for the month was closed out to Cost of Goods Sold. Step 5 Post the journal entries that you recorded on the "General Journal" tab to the "T-accounts" tab. This is the company's first month of business, so there will not be any beginning balances. Compute the balance for each T-account after all of the entries have been posted. Step 6 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 #1 and Job #2 that were worked on during the month by the company. Make sure to follow the format noted in your book (pg. 87). (Hint: This is the company's first month of operations and therefore the beginning balances will be zero.) Step 7 Prepare an Income Statement for the month using the Traditional Format on the "Income Statement" tab. Step 8 Answer the additional questions below Check Figure: Cost of Goods Manufactured - $7,120, Net operating income $10,130 What is the ending balance for raw materials? What is the ending balance for work in process? What is the ending balance for finished goods? What is the actual manufacturing overhead cost incurred during December before adjustment? What is the total applied manufacturing overhead cost during December before adjustment? What is the unadjusted cost of goods sold? Was the manufacturing overhead for the month of December overapplied/underapplied ? What is the amount of Manufacturing overhead overapplied/underapplied? What is the adjusted cost of goods sold? What is gross margin? What is the total prime cost for Job#12 What is the total conversion cost for job #1? What is the total product cost for job#1? What was the period cost incurred for the month of December? What is the total variable cost incurred for Job #1(assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)? What is the contribution margin for Job #1 (assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)? What would be the actual (not applied) total fixed manufacturing overhead cost incurred for the company for the month if the order in Job #1 is for five tables instead of one table assuming this cost is with in the relevant range? Job Cost Sheet Job Number Item Date Initiated Date completed Direct Matarials Amount Direct Labor Rate Manufacturing Overhead Rate Amount Hours Amount Hours $ Cost Summary Direct Materials Direct Labor Manufacturing Overhead Total Product Cost Unit Product Cost 120.00 3,000.00 $ Direct Materials: Job Cost Sheet Date Initiated Job Number Item Date completed Direct Matarials Direct Labor Rate Amount Manufacturing Overhead Rate Amount Amount Hours Hours $ Cost Summary Direct Materials Direct Labor Manufacturing Overhead Total Product Cost Unit Product Cost $ $ 60.00 1,500.00 4,290.00 2,730.00 $ Direct Materials: Debit Credit General Journal Date Description 1-Dec Raw Materials A/C To Accounts Payable A/C (Being Raw materials purchased on account) 5-Dec Work in Process A/C To Raw Materials A/C (Being Raw materials issued for use in Job #1) 10-Dec Work in Process Manufacturing Overhead A/C Selling & Administration Overhead A/C Account Receivables Accounts Payable Sales Revenue Raw Materials Salaries and Wages Payable Cost of Goods Sold Work In Process Salaries and Wages Expense Finished Goods Advertising Expense Depreciation Expense Manufacturing Overhead Depreciation Expense Manufacturing Overhead Accumulated Depreciation Thunderduck Custom Tables, Inc. Schedule of cost of goods manufactured For the month Ended December 31, 20XX Thunderduck Custom Tables, Inc. Cost of goods sold For the month Ended December 31, 20XX Thunderduck Custom Tables, Inc. Income Statement For the month Ended December 31, 20XX Step 1 Determination of the predetermined Manufacturing overhead rate :- Predetermined Manufacturing Overhead Rate = Total estimated manufacturing overhead cost $6,000 = $ per 500 direct labour hour 12 Total estimated direct labor hours Step 2 The first order you received was to manufacture a table using a table top and four legs. This is your Job #1 :- Job #1 Cost Sheet Total Direct Materials Table Top 1800 Table Leg 550 2350 Direct Labor 120 2 hours* 3 employees= 6 hours *$20per hour 3000 Manufacturing $500* 6 hours Overhead Total 5470 Step 3 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. Job #2 Cost Sheet Total Direct Materials Table Top 1800 Table Leg 550 Drawer 380 2730 Direct Labor 60 1 hours* 3 employees=3 hours *$20 per hour Manufacturing $500* 3 hours Overhead 1500 Total 4290 Step 4 Journal entries Sr. No. Particulars Debit Credit 1-Dec Raw Materials A/C $18000 To Accounts payable Alc $18000 (Being Raw materials purchased on account) 5-Dec Work in Process A/C $ 2350 $ 2350 To Raw Materials A/C (Being Raw materials issued for use in Job #1) 10-Dec $120 Work in Process A/c (2 hours* 3 employees*$ 20 per hour) $4500 Manufacturing Overheads Alc Dr. $2,000 Selling & Administration Overheads Alc Dr. 6620 To Salaries and wages payable A/C (Being employee cost incurred) 15-Dec Work in Process A/C $2730 $2730 To Raw Materials A/C (Being Raw materials issued for use in Job #2) 16-Dec Manufacturing Overheads A/c $1,400 To Rent Payable A/C $1,400 (Being Rent for the factory building incurred) 17-Dec Selling & Administration Overheads A/C $1,600 To Advertising Expenses Payable A/c $1,600 (Being Advertising Expenses incurred) 20-Dec Manufacturing Overheads Alc $150 $600 Selling & Administration Overheads A/C Dr. To Accumulated depreciation A/c $750 (Being depreciation charged on factory and office equipments) 22-Dec Work in Process A/C Dr. 3,000 To Manufacturing Overheads A/C $3,000 (Being Manufacturing Overheads charged to job #1 @ $500 per direct labour) (500 * 6) 26-Dec $ 5470 Finished Goods A/C Dr. $ 5470 To Work in Process A/C (Being job #1 completed) 28-Dec Cost of goods sold A/C Dr. $ 5470 $ 5470 To Finished Goods A/C (Being goods sold transferred) 28-Dec Account Receivable A/C $23,000 Dr. To Sales Revenue A/C $ 23,000 (Being goods sold on account) 31-Dec Work in Process A/c (1 hour* 3 employees *$20 per hour) Dr. $60 To Salaries and wages payable Alc $ 60 (Being direct labor cost incurred) 31-Dec $1500 Work in Process A/C Dr. $1500 To Manufacturing Overheads Alc (Being Manufacturing Overheads charged to job #2 @ $500 per direct labour) (500 * 3) 31-Dec $ 1,550 Cost of goods sold A/C Dr. To Manufacturing Overheads Alc (4500+1400+150)-500(6+3) $1550 (Being underapplied overheads charged
