Question 1

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.
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	$ 2,700.00
Table Leg	$ 1,000.00
Drawer	$ 470.00
Assume a $25 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 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	$ 1,300.00
c.	Depreciation of factory equipment per month	$ 600.00
Total Estimated manufacturing overhead	$ 5,400.00
What is the predetermined manufacturing overhead rate?	Blank 1
Step 2	The first order you received was to manufacture a table using a table top and four legs. This is your Job #1. Go to the "Job #1 Cost Sheet" tab. There are three assembly employees that spend 2 hours each to make the table. Here, you will calculate the cost of making the table by calculating the direct material, direct labor and applied overhead cost. Complete the job cost sheet by calculating the direct material, direct labor and manufacturing overhead applied that would be incurred for 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. There are three assembly employees that spend 3 hours each to make the table. On the "Job #2 Cost Sheet" tab you calculate the cost of making the table by calculating the direct material, direct labor and applied overhead cost.
Step 4	Here you will find a list of transactions that must be recorded for the company for the month of December. On the "General Journal" tab, you will record all of these entries in proper journal entry format. The following is a list of transactions that need to be recorded for the company for activity in the month of December. Record these in the "General Journal" tab using the proper journal entry 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	Raw Materials purchased on account, $27,000.
5-Dec	All Raw Materials needed for Job #1 were requisitioned from the material storage for use during the month. Assume all materials are direct.
10-Dec	The following employee costs were incurred but not paid during the month:
Total cost incurred for direct labor for Job #1 Cost Sheet.
Salary for supervisor of the factory $4,000.
Administrative Salary $2,000.
15-Dec	All Raw Materials needed for Job #2 were requisitioned from the material storage for use during the month. Assume all materials are direct.
16-Dec	Rent for the month of December for the factory building 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 was $750 ($150 for equipment used in the factory and the remainder for equipment used in selling and administrative activities).
22-Dec	Manufacturing overhead cost was applied based on direct labor hours to Job #1 based on the POHR determined on the "Job Cost Sheet".
26-Dec	Job #1 was completed and transferred to Finished Goods during the month.
28-Dec	The completed table from Job #1 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	Direct labor cost incurred but not paid for three employees to start manufacturing Job #2. The employees only worked one hour each, three hours total during the month and they did not complete their work on the job.
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.
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= $9,550
What is the ending balance for raw materials?	Blank 2
What is the ending balance for work in process?	Blank 3
What is the ending balance for finished goods?	Blank 4
What is the actual manufacturing overhead cost incurred during December?	Blank 5
What is the total applied manufacturing overhead cost during December?	Blank 6
What is the unadjusted cost of goods sold?	Blank 7
Was the manufacturing overhead for the month of December overapplied/underapplied ?	Blank 8
What is the amount of Manufacturing overhead overapplied/underapplied?	Blank 9
What is the adjusted cost of goods sold?	Blank 10
What is gross margin?	Blank 11
What is net operating income?	Blank 12
What is the total prime cost for Job#1?	Blank 13
What is the total conversion cost for job #1?	Blank 14
What is the total product cost for job#1?	Blank 15
What was the period cost incurred for the month of December?	Blank 16
What is the contribution margin for Job #1 (assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)?	Blank 17
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?	Blank 18

Richland College School of Engineering, Business, and Technology 972-238-6210 Principles of Microeconomics Econ 2302-81002 Fall 2016 | 3 Credit Hours INSTRUCTOR'S NAME: Steven Manley TELEPHONE NUMBER: 972-238-6377 OFFICE NUMBER: Lavaca 239 OFFICE HOURS: MW 11:10 - 2:10 pm, F 11:10 - 1:10, or by appointment E-MAIL ADDRESS: smanley@dcccd.edu CLASS MEETING TIME: TR 9:30am - 10:50am in D154 8/29/16 - 12/15/16 DROP DATE WITH A \"W\": 11/17/2016 THE INSTRUCTOR RESERVES THE RIGHT TO AMEND A SYLLABUS AS NECESSARY. I. COURSE DESCRIPTION: Econ 2302: Principles of Microeconomics-- This is a Texas Common Course Number. This is a DCCCD Core Curriculum Course. The principles of microeconomics are presented. Topics include the theory of demand, supply, and price of factors. Income distribution and theory of the firm are also included. Emphasis is given to microeconomic applications of international trade and finance as well as other contemporary microeconomic problems. (3 Lec.) Coordinating Board Academic Approval Number 4506015125 II. REQUIRED / RECOMMENDED COURSE MATERIALS: Microeconomics: Understanding our Material World, 2nd edition, published by Kendall Hunt. ISBN: 9781465278180 The above ISBN is for a new hard copy of the text, available from the campus bookstore, which includes an access code on the inside front cover that gives you access to the Webcom Website which will be used in this class. The Webcom site also includes access to the electronic version of the textbook. III. COURSE WEBSITES To register your access code on the Webcom Website, use the following link: http://www.grtep.com/ BE SURE TO ENTER YOUR CORRECT SECTION NUMBER WHEN YOU REGISTER WITH WEBCOM FOR THE COURSE MATRIALS. If you have any difficulty registering in the WebCOM system, contact: websupport@kendallhunt.com The Webcom Website is where you will find course materials such as the e-text, supplemental class materials, and access to Lesson Quizzes. Blackboard is where your Test Review Assignments and Discussion Boards will be completed and graded. Remember, the delivery of all course materials, assignments and assessments will be digital and internet basedthe course does not utilize a traditional textbook as the only instructional tool. All portions of the materials can be printed from your computer as well. IV. COURSE OBJECTIVES: Economics 2302, as part of the Core Curriculum, satisfies the following Exemplary Educational Objectives in Economics set forth by the Texas Higher Education Coordinating Board. 1. To understand the methods, technologies, and data that economists use to investigate the human condition. 2. To understand the development of our economic institutions and processes and how they relate to our political systems and culture. 3. To demonstrate the use of and offer critiques for alternative explanatory systems and theories in the principles of a microeconomics course 4. To understand and describe alternative explanations and approaches to domestic social issues 5. To analyze how historical, social, political, cultural, and global issues have an influence on our microeconomic institutions. 6. To understand the evolution and current microeconomic role of the U.S. in the world economy. 7. To differentiate and analyze historical evidence (documentary and statistical) through differing points of view in economics 8. To develop the ability to establish and apply reasonable criteria in determining the acceptability of historical evidence and social research. 9. To analyze, critically assess, and develop creative solutions for microeconomic problems. 10. To apply the microeconomic principles and theories presented in this course by using the information obtained from the news media and other appropriate sources to evaluate current economic policy as it relates to the current economic and public policy environment. V. LEARING OUTCOMES: Upon successful completion of Economics 2302, you should be able to: 1. Identify the major microeconomic problems confronting the U.S. economy, firms, and consumers. 2. Identify and explain the primary causes of these problems. 3. Identify and explain the principal economic effects of these problems. 4. Demonstrate knowledge of microeconomic theory necessary to think intelligently about these problems. 5. Identify, explain, and justify appropriate policy options for resolving these problems. 6. Evaluate the validity of policies proposed by others for resolving these problems. 7. Succeed in subsequent business courses that require an understanding of microeconomic theory for successful, or enriched, completion. 8. Apply the theory of microeconomics to subsequent courses in the arts, humanities, sciences, and social sciences. VI. CORE / WECM / SCANS COMPETENCIES: Economics 2302 satisfies the following Core Curriculum Intellectual Competencies defined by the Texas Higher Education Coordinating Board. READING: the ability to analyze and interpret a variety of printed materials-above 12th grade level. WRITING: the ability to produce clear, correct and coherent prose adapted to purpose, occasion and audience-above 12th grade level. LISTENING: analyze and interpret various forms of spoken communications, possess sufficient literacy skills of writing and reading-above 12th grade level. CRITICAL THINKING: think and analyze at a critical level. COMPUTER LITERACY: understand our technological society, use computer based technology in communications, problem solving, and acquiring information. VII. SPECIFIC COURSE LEARNING OUTCOMES: Economics as a field of study seeks to explore a series of ongoing issues and problems, which confront all of us in our daily lives as producers, consumers, and citizens. Economics seeks to provide some insight into the nature of these issues and problems and suggests possible solutions. When making decisions as producers, consumers, and citizens in the real world, however, we know we must face certain realities, such as limited resources; and the fact that every proposed solution has a cost. Economics seeks to deal with these realities as it pursues an ultimate goal of improving the overall quality of life that people might enjoy. In summary, as you move through this course it is hoped that a better understanding of the way the world "works" will emerge...along with some better ways to achieve an understanding world. VIII. COURSE OUTLINE: Lesson 1 Topic Introduction/fundamentals 2 The Economic Problem 3 Demand and Supply 4 Market Efficiency vs Market Failures TEST 1, Blackboard Test 1 Review, and Webcom Quizzes 1-4 due on Week of 9/27 5 Elasticity and Allocation 6 7 Consumer Behavior Costs of Production TEST 2, Blackboard Test 2 Review, and Webcom Quizzes 5-7 due on Week of 10/25 8 Pure Competition 9 10 Pure Monopoly Monopolistic Competition and Oligopoly TEST 3, Blackboard Test 3 Review, 2 Discussion Boards, and Webcom Quizzes 8-10 by 11/15 11 Factor Demand for Resources 12 13 The US and the Global Economy World Trade and Currency FINAL EXAM, Blackboard Final Test Review, and Webcom Quizzes 11-13 due on final exam date for this class*** IX. EVALUATION PROCEDURES: GRADES Unit 1 Exam: 15% Unit 2 Exam: 15% Unit 3 Exam: 15% Final Comprehensive Exam: 20% (Final Exam grade also will replace the lowest unit exam grade IF it is higher) 2 Blackboard Discussion Boards: 10% - 1 post AND 1 reply (as long as it FULLY answers the questions posed in the Discussion Board prompt) Average of Blackboard Test Reviews: 25% - 5 attempts on each of 4 reviews (Lowest Review grade dropped from average) The final exam is comprehensive may not be dropped or replaced. Any violation of the Code of Student Conduct will forfeit the student's option of taking the Final Exam. No grade information will be given out over the telephone or via e-mail. ALL FINAL GRADES WILL BE POSTED ON THE DCCCD E-CONNECT SITE GRADE QUESTIONS: Students have every right to request an explanation of an assigned grade on any assignment. However, given various instructor responsibilities and time constraints it is expected that students will monitor their grades and course progress and request a review in a timely manneri.e., within 2 days of the grade posting. The posted grade will become final at the end of the 2 day period. GRADES Grades for Lesson Quizzes and tests will be available in the grade book at the WebCOM web site. Click \"gradebook\" in the upper right-hand corner of the home page. Check to be sure your results are properly recorded. Grades for Unit Exams, Blackboard Test Reviews, and the Blackboard Discussion Board can be found on Blackboard. EXTENSION POLICY (applies to ALL assignments and tests) ABSOULTELY NO ASSIGNMENTS WILL BE ACCEPTED LATE. STUDENTS ARE EXPECTED TO PREPARE IN ADVANCE AND HAVE ACCESS TO A RELIABLE INTERNET CONNECTION. THESE ASSIGNMENTS ARE MEANT TO HELP YOU DO WELL ON EXAMS, THEREFORE THEY DO NO GOOD IF YOU DO NOT COMPLETE THEM BY THE DATE OF THE EXAM. If a student is unable to take a scheduled test or quiz, please talk to me before the due date of the assignment. In addition, if a makeup assignment is allowed due to extenuating circumstances, it must be completed in a timely manner determined by the instructor. EXTENUATING CIRCUMSTANCES Extenuating circumstances include a death in the family, hospitalization, car accident, etc.... All circumstances must be accompanied by documentation as the Richland College Handbook states is Richland policy. Being sick or having computer issues are not extenuating circumstances. Extenuating circumstances are the only reason that a student may be allowed to make up an assignment. EXAMS AND ASSIGNMENTS: WEBCOM QUIZZES In this course you will find 13 lessons total. Please note the assignments that are due for each lesson and unit and the posted deadlines. Lesson are timed. Please note carefully the instruction when you begin any assignment. You have the option of attempting each lesson quiz an unlimited number of times, but please note that the highest grade you receive will be the grade you keep, and that the questions for each assignment are randomly generated on each attempt. Each assignment MUST BE COMPLETED by the due dates in the course schedule. UNIT EXAMS All tests will be given in the classroom during the assigned class time. With instructor's approval, students may take tests early, giving at least seven days notice of desire to do so. No Late Tests Will Be Given. Any test not taken will be recorded as a zero. Exams will consist of definitions, multiple choice questions, and short essay questions. Specific dates for exams will be announced in advance. Students are expected to take the exams at the scheduled time. BLACKBOARD TEST REVIEWS Each of the four units will conclude with a Blackboard Test Review that contains a combination of multiple choice, true & false, and multiple answer questions that pertain to all the chapters covered by that unit. These are meant to help prepare you for the Unit Exams, and you will have 5 attempts on each test review. Blackboard will record the highest grade. BLACKBOARD DISCUSSION BOARDS The deadline for the discussion boards is listed in the course schedule. Discussion Board assignments are meant for the student to be able to answer an essay question using the knowledge that he/she grasps from the various chapters. Grading will be based on an understanding of the question and a substantive, meaningful, and well thought out answer. Make sure to post your answers to the discussion board questions in the website; do not email your answers to me. There are 2 Discussion Board assignments: 1) Create a new POST: You will post your response to one of the discussion board options. There is no prescribed length, but it needs to FULLY answer and accurately the questions posed in the Discussion Board prompt you choose. 2) REPLY to an existing post: You will reply to another student's post. Your reply needs to address each of the particular answers posted by another student. Your reply should detail WHY you agree or disagree with each of their answers. Please be courteous and respectful if you happen to disagree with their conclusions. Note: the other student's post that you respond to does not have to address the same particular Discussion Board topic you choose when you created your own post for part 1 discussed above. Discussion Board grades will be posted AFTER the deadline for each board, and usually within three business days after each deadline has passed. Please do not send me emails about discussion board grades until AFTER an announcement has been posted on eCampus stating that grades have been posted. Unlike your other assignments, discussion board grades are not posted automatically. I manually post these grades, and it is not uncommon to see a grade of zero listed prior to my posting of your actual grade. X. XI. GRADING SCALE: Course Grade Percentages A 89.5%--100% B 79.5%--89.4% C 69.5%--79.4% D 59.5%--69.4% F below 59.5% CLASSROOM POLICIES: USE OF ELECTRONIC DEVICES Cell phones, iPods, and all other electronic devices must be turned off while in class. Programmable calculators will not be allowed in this class. Laptops are acceptable to use in class. COURSE WEBSITE Also, please register on the eCampus (Blackboard) site as soon as it is available. You will be using both the eCampus and the Webcom site during the term. Blackboard--Go to: http://ecampus.dcccd.edu/ Click \"Login\" and enter the letter \"e\" followed by your seven digit Student ID number for Username and for Password / Press Enter Click on the \"Courses\" tab at the top of the page. Your own BlackBoard (Bb) page will appear with your name and courses listed. Click on the course name to enter the course. To avoid \"security problems\" please change your Password after accessing the course. Go to \"Student Tools/Personal Information\" and choose Change Password ... and be sure to verify/enter your own personal Email address under \"Edit Personal Info\Job Cost Sheet Job Number Date Initiated Item Date completed Direct Matarials Amount Direct Labor Hours Cost Summary Direct Materials Direct Labor Manufacturing Overhead Total Product Cost Unit Product Cost Rate Manufacturing Overhead Amount Hours Direct Materials: Manufacturing Overhead Rate Amount Materials: Job Cost Sheet Job Number Date Initiated Item Date completed Direct Matarials Amount Direct Labor Hours Cost Summary Direct Materials Direct Labor Manufacturing Overhead Total Product Cost Unit Product Cost Rate Manufacturing Ov Amount Hours Direct Materials: Manufacturing Overhead Rate Amount Date General Journal Description Debit Credit Account Receivables Accounts Payable Raw Materials Salaries and Wages Payable Work In Process Finished Goods Manufacturing Overhead Accumulated Depreciation yable Sales Revenue es Payable Cost of Goods Sold Salaries and Wages Expense Advertising Expense Depreciation Expense 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 Custom Tables, Inc. of goods sold ded December 31, 20XX Thunderduck Custom Tables, Inc. Income Statement For the month Ended December 31, 20XX