Problem \#1: Job-Order Costing ( 60 points) Mahomes Custom Sports Supplies Mig. Co. uses a job-order cost system to accumulate product costs and traditional normal costing to apply overhead using a factory-wide rate based on machine hours used during 2023. The following information was obtained from the budget of Mahomes Custom Sports Supplies Mfg. Co. for 2023: (2 points) a) Compute the predetermined overhead rate that Mahomes Custom Sports Supplles Mfg. Co. would use for 2023 . Supporting Calculation Required: At April 30, 2023, the accounting records of Mahomes Custom Sports Supplies Mfg. Co, revealed: Raw Materials Inventory WorkIn-ProcessInventory(J0b#58and#59)FinishedGoodsInventory(30b57)435,500 ( 2 points) Finished Goods Inventory (Job #57 ) $696,300 and #59 ) b) Compute the balance of the Work In-Process Inventory that Mahomes Custom Sports Supplies Mfg. Co. reported at April 30, 2023. Supporting Calculation Required: c) Enter the relevant data about the inventory in the applicable T-accounts. (2 points) During the month of May 2023, Mahomes Custom Sports Supplles Mfg. Co. engaged in the manufacturing activities and related-transactions presented below. Required: c) Analyze the activities and prepare the necessary joumal entriesi. Post the entries to the applicable Taccounts and enter the data in the job cost sheets as required. 1) Purchased and received materials from suppliers costing $385,000. Freight charges of $22,000 were incurred on materials shipped FOB Shipping Point and freight charges of $17,500 were incurred on materials shipped FOB Destination. All costs were incurred on credit. (4 points) Supporting Calculation Required: 2) The factory received materials with the following costs that it requisitioned from its raw materials warehouse to continue work on the jobs in progress and to begin Job \# 60 , Job \# 61 and Job \# 62 : (4 points) 3) Time records were processed and payroll recorded direct labor hours and costs incurred for the morith (4 points) 4) Overhead for the month was applied to the jobs and work-in process. 8 n aintel 5) Actual overhead costs incurred during the month were: (6 points) 6) Completed jobs with the following units that were transferred out of the factory inciuding the computation of the cost per unit of the completed jobs in the job cost sheets: (4 points) ACFI 430/530 Cost Accounting problem set 2 Supporting Calculations Required: (6 points) 9) Use the T-account to determine the amount of the under (over) applied overhead for May. Mahomes Custom Sports Supplies Mfg. Co. considers the amount of the under (over) applied overhead to be material if it exceeds 2.5% of actual overhead costs for the month. Write-off the amount of the under (over) applied overhead. ( 6 points) upporting Calculations Required: Problem \#1: Job-Order Costing ( 60 points) Mahomes Custom Sports Supplies Mig. Co. uses a job-order cost system to accumulate product costs and traditional normal costing to apply overhead using a factory-wide rate based on machine hours used during 2023. The following information was obtained from the budget of Mahomes Custom Sports Supplies Mfg. Co. for 2023: (2 points) a) Compute the predetermined overhead rate that Mahomes Custom Sports Supplles Mfg. Co. would use for 2023 . Supporting Calculation Required: At April 30, 2023, the accounting records of Mahomes Custom Sports Supplies Mfg. Co, revealed: Raw Materials Inventory WorkIn-ProcessInventory(J0b#58and#59)FinishedGoodsInventory(30b57)435,500 ( 2 points) Finished Goods Inventory (Job #57 ) $696,300 and #59 ) b) Compute the balance of the Work In-Process Inventory that Mahomes Custom Sports Supplies Mfg. Co. reported at April 30, 2023. Supporting Calculation Required: c) Enter the relevant data about the inventory in the applicable T-accounts. (2 points) During the month of May 2023, Mahomes Custom Sports Supplles Mfg. Co. engaged in the manufacturing activities and related-transactions presented below. Required: c) Analyze the activities and prepare the necessary joumal entriesi. Post the entries to the applicable Taccounts and enter the data in the job cost sheets as required. 1) Purchased and received materials from suppliers costing $385,000. Freight charges of $22,000 were incurred on materials shipped FOB Shipping Point and freight charges of $17,500 were incurred on materials shipped FOB Destination. All costs were incurred on credit. (4 points) Supporting Calculation Required: 2) The factory received materials with the following costs that it requisitioned from its raw materials warehouse to continue work on the jobs in progress and to begin Job \# 60 , Job \# 61 and Job \# 62 : (4 points) 3) Time records were processed and payroll recorded direct labor hours and costs incurred for the morith (4 points) 4) Overhead for the month was applied to the jobs and work-in process. 8 n aintel 5) Actual overhead costs incurred during the month were: (6 points) 6) Completed jobs with the following units that were transferred out of the factory inciuding the computation of the cost per unit of the completed jobs in the job cost sheets: (4 points) ACFI 430/530 Cost Accounting problem set 2 Supporting Calculations Required: (6 points) 9) Use the T-account to determine the amount of the under (over) applied overhead for May. Mahomes Custom Sports Supplies Mfg. Co. considers the amount of the under (over) applied overhead to be material if it exceeds 2.5% of actual overhead costs for the month. Write-off the amount of the under (over) applied overhead. ( 6 points) upporting Calculations Required
