QUESTION 1 200 points Save Answer 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 nonal, 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 $1,200.00 Table Leg $250.00 Drawer $320.00 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 $3,500.00 b. Rent for the factory per month $700.00 c. Depreciation of factory equipment per month $600.00 Total Estimated manufacturing overhead $4,800.00 What is the predetermined manufacturing overhead rato? Step 2 Step 3 The first order you received 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 Step 2 Step 3 The first order you received 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. 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 Raw Materials purchased on account, $12,000 All Raw Materials needed for Job #1 were requisitioned from the material storage for use during the month. Assume ait materials are direct. After you joumalize 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, $30 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 $4,000 Administrative Salary $2,000 All Raw Materials needed for Job #2 were requisitioned from the material torage for use during the month. Assume all materials are direct. (After you journalize this entry please enter the information into Job W2 Cost Sheet) Rent for the month of December for the factory building incurred but not paid $700 Advertising costs incurred but not paid for the month was S1,600, Depreciation for the month of December was recorded on equipment was $750 (5150 for equipment used in the factory and the remainder for equipment used in selling and administrative activities) 15-Dec 16-Dec 17-Dec 20-Dec All Raw Materials needed for Job #2 were requisitioned from the material storage for use during the month. Assume al materials 15-Dec are direct (Afer you joumalize this entry please enter the information into Job i2 Cost Sheet) 16-Dec Rent for the month of December for the factory building incurred but not paid $700. 17.Dec Advertising costs incurred but not paid for the month was $1,600 Depreciation for the month of December was recorded on equipment was $780 ($150 for equipment used in the factory and the 20-Dec remainder for equipment used in selling and administrative activities) Manufacturing overhead cost was applied based on direct labor hours to job w1 based on the POHR deltmined on the Job 22.Dec Cost Sheet" (Alter you journalize this entry please enter the information into Job 11 Cost Sheet) 26-Dec Job #1 was completed and transferred to Finished Goods during the month The completed table from Job #1 was sold on account to the customer for $17,000 during the month (Hint: Make sure to 28-Dec 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 22. The employees only worked one hour ench, three hours total, $30 per hour during the month and they did not complete the 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 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 5 Post the joumal 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 Answer the additional questions below Step 8 Check Figure: Cost of Goods Manufactured= $4,780, Net operating incomo-$6,770 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 overappliedlunderapplied ? What is the amount of Manufacturing overhead overappled/underappilled? What is the adjusted cost of goods sold? What is gross margin? What is the total prime cost for Job#1? What is the total conversion cost for job #1? What is the landinin Save All Ar ep 8 Answer the additional questions below Check Figure: Cost of Goods Manufactured= $4,780, Net operating income=$6,770 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#1? 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? M Cather Direct Materials: DIM AR 1 1 23 20 41 Job Cost Sheet Job Coat Sheet General Journal Taccounts (General Ledger) Schedule of COGM COGS N o Cash Mamber Hem Ded Dute.com Direct Material . Am Der Lab une Amount Max Ovested Houn Hours . 33 14 Costum Mall Orator Mand Tot Cost Un out 30 23 23 32 14 35 3 0 G Account Received M N 0 2 1 4 5 Aduna 0 Raw Materiale Scaries and Wages Payable Cost of GodSold 10 11 12 13 14 15 16 17 18 13 20 21 Work In Process Sand Wages Exp 24 17 Finished Goods Advertising a Deared 37 30 Manchurine Overhead 40 41 142 4 Sched COOM COGS Acumulated Depreciation ICS General Journal Tacens (General Lediget) Job Cast Shoot VI lili ihl WI HL 014 x Marge & Centar $ % 8-98 Conditions for Formatting a C D E # 3 Thunderddustom Tables Ine Schedule of cost of goods manufactured For the month Ended December 31, 20XX Thundertuck Custom Table, ine Cost of goods For the month Ended December 31, 20xx 5 6 7 Thundentuk ustom Tables we Income Statement For the more Ended December 31, 2010 9 10 11 12 13 16 IS 16 17 19 20 21 22 23 24 25 26 27 28 29 30 33 32 33 16 35 36 32 39 40 41 2