* Question Completion Status: 8 B Data 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. 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 #2 Cost Sheet. The cost of the direct materials that can be used to manufacture the table are as follows. Table Top $2,200 $3,000 Table legs, quantity 4 ($750 per leg) Drawer Assume a $70 per hour wage rate to the assembly employees. $420 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: Factory supervisor salary Rent for the factory Depreciation of factory equipment Property insurance of factory Total Estimated manufacturing overhead $2,600 $700 $1,200 $1,800 $6,300 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit * Question Completion Status: What is the predetermined overhead rate (POHR)? 52.5 Data 2 The first order you received was to manufacture a table using a table top and four legs. This is your Job #1. Data 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 1 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 payable Accounts receivables Accumulated depreciation Advertising expense Cost of goods sold Depreciation expense Finished goods Salaries and wages expense Salaries and wages payable Sales revenue Insurance expense Manufacturing overhead Work in process Raw materials 1-Dec Raw materials purchased on account, $22,000. 5-Dec 10-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) The following employee costs were incurred but not paid during the month: Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit ? o 8 Question Completion Status: 10-Dec 12-Dec 15-Dec 16-Dec The following employee costs were incurred but not paid during the month: Direct labor for Job #1, consisted of 60 hours at a rate of $70 per hour, totaling $4,200. (After you journalize this entry please enter the information into Job #1 Cost Sheet) Salary for supervisor of the factory $2,500. Administrative Salary $1,500. Manufacturing overhead cost was applied based on direct labor hours to Job #1 using the POHR calculated in Question 1. (After you journalize this entry please enter the information into Job #1 Cost Sheet) All Raw materials needed for Job #2 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 #2 Cost Sheet) 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 $1,200. 20-Dec 24-Dec Depreciation for the month of December was recorded on equipment $1,250 ($950 for equipment used in the factory and $300 for equipment used in selling and administrative activities). Property insurance incurred but not paid $1,700 ($1,400 for the factory and $300 for selling and administrative offices). Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit * Question Completion Status: 24-Dec for equipment used in selling and administrative activities). no rusory and wouw Property insurance incurred but not paid $1,700 ($1,400 for the factory and $300 for selling and administrative offices). 19 28 g M 26-Dec Job #1 was completed and transferred to Finished Goods during the month. Step 2 28-Dec 31-Dec 31-Dec 31-Dec The completed table was sold on account to the customer for $27,000 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.) By the end of the month, 30 hours of direct labor were incurred at a rate of $70 per hour, totaling $2,100 to begin production on job #2. The employees will be paid next month. (After you journalize this entry please enter the information into Job #2 Cost Sheet) Manufacturing overhead cost was applied using the direct labor hours from Job # 2 and the POHR calculated in Question 1. (After you journalize this entry please enter the information into Job #2 Cost Sheet) Post the journal entries that you recorded on the "General Journal" tab to the "T-accounts (General Ledger)" tab and calculate the balance for each account. This is the company's first month of business, so there will not be any beginning balances. Record the entry in the general journal to close the Manufacturing Overhead account and adjust for overapplied/underapplied overhead. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit * Question Completion Status: 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 # 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. 109). (Hint: This is the company's first month of operations and therefore the beginning balances will be zero.) Prepare an Income Statement for the month using the Traditional Format on the "Income Statement" tab. Step 4 Step 5 Use the following check figures and make any necessary corrections. 8 Step 6 Check Figure 1: Cost of Goods Manufactured Check Figure 2: Net Operating Income $12,550 $10,625 Answer the following additonal questions. Be sure to write all numbers as positive 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 manufacturing overhead cost during December? B 9 What is the unadjusted cost of goods sold? Was the manufacturing overhead for month December overapplied/underapplied ? Enter * Question Completion Status: production? 7 What is the actual manufacturing overhead cost incurred during December? 8 What is the total applied manufacturing overhead cost during December? 9 What is the unadjusted cost of goods sold? 10 Was the manufacturing overhead for month December overapplied/underapplied? Enter either underapplied or overapplied. 8 11 What is the dollar 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 #1 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 #1 Cost Sheet? 17 What was the period cost incurred for the month of December? 18 What is the contribution margin (in dollars) for Job #1 (assume that all selling and administrative cost and all manufacturing overhead costs are fixed.) 19 If job#1 was for five tables instead of one, what would be the total amount of variable cost recorded on Job #1's cost sheet?? o 20 If the factory has the capacity to produce five tables each month, what would be the total actual fixed manufacturing overhead cost (in dollars) incurred if five tables were produced instead of one? Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit E19 fx A B D E F G H J K L M N 0 P Q R S U V W X Y Z 1 2 3 Job Cost Sheet Direct Materials: 4 Job Number Job 1 5 Item Table top, table legs Date Initiated Date completed 1-Dec 6 7 Direct Matarials 8 Amount Hours Direct Labor Rate Manufacturing Overhead Amount Hours Rate Amount 9 $ 5,200 60 70 4200 60 $52.50 $3,150.00 10 12 13 Cost Summary 14 Direct Materials $ 5,200.00 15 Direct Labor $ 4,200.00 16 Manufacturing Overhead $ 3,150.00 17 Total Product Cost $ 12,550.00 18 Unit Product Cost $ 12,550.00 19 20 21 23 24 25 27 29 Job #1 Cost Sheet Job #2 Cost Sheet General Journal T-accounts (General Ledger) | Schedul ... (+ E18 fx C D E F G H J K L M N 0 P Q S T U V W X Y Z AA A B 1 2 Job Cost Sheet 3 4 5 6 7 Direct Matarials Amount 8 $ Job Number Job 2 Item able top, table legs, draw Date Initiated Date completed 1-Dec Direct Labor Manufacturing Overhead Hours Rate Amount Hours Rate 5,620 30 70 2100 30 $52.50 Amount $1,575.00 9 10 11 12 Cost Summary 13 Direct Materials $ 5,620.00 14 Direct Labor $2,100.00 15 Manufacturing Overhead $ 1,575.00 16 Total Product Cost $ 9,295.00 17 Unit Product Cost $9,295.00 18 19 21 22 24 25 26 27 28 Direct Materials: Job #1 Cost Sheet Job #2 Cost Sheet General Journal T-accounts (General Ledger) Scheduli + Ready Accessibility: Investigate + 67% D E F G H J K M N P C50 fx A 1 2 Date General Journal Description Debit Credit 3 1-Dec Raw material $ 22,000 4 Accounts payable $ 22,000 5 6 5-Dec Work in process $ 5,200 7 Accounts payable $ 5,200 8 9 10-Dec Work in process $ 4,200 10 Manufacturing overhead $ 2,500 11 Salaries and wage expense $ 1,500 12 Salaries and wage payable $ 8,200 13 14 12-Dec Work in process $ 3,150 15 Manufacturing overhead $ 3,150 16 17 15-Dec Work in process $ 5,620 18 Raw materials $ 5,620 19 20 16-Dec Manufacturing overhead $ 700 21 Accounts payable $ 700 22 Job #1 Cost Sheet Job #2 Cost Sheet General Journal T-accounts (General Ledger) Schedul Ready Accessibility: Investigate + 100% 4 M53 fx A B C D E F G H | J K L M N P Q R S T U V W X $ 700 16-Dec $ 1,200 17-Dec 5 6 7 8 Balance $ 27,000 $ 23,900 Balance 9 $27,000 Balance 10 Raw Materials Salaries and Wages Payable 11 1-Dec $ 22,000 $ 5,200 5-Dec $ 8,200 10-Dec 12 $ 5,620 15-Dec $ 2,100 31-Dec Cost of Goods Sold 13 28-Dec $ 12,550 14 31-Dec 15 $ 10,300 Balance 16 17 Balance $ 11,180 18 19 Work In Process 20 5-Dec $ 5,200 21 10-Dec $ 4,200 Salaries and Wages Expense 10-Dec $ 1,500 22 15-Dec $ 5,620 23 16-Dec $ 3,150 24 31-Dec $ 2,100 25 31-Dec $ 1,575 26 27 28 Balance $ 21,845 Balance $ 1,500 29 30 Finished Goods 31 26-Dec $ 12,550 $ 12,550 . General Journal 28-Dec Advertising Expense T-accounts (General Ledger) Schedule of COGM, COGS & Income Ready Accessibility: Investigate + 80% File Home Insert Draw Page Layout Formulas Data Review View Help Calibri Paste 11 ' ' Wrap Text General v A x = Merge & Center v $ % 9 500-98 Clipboard F B8 BIU Font fx 123456 A B C D Thunderduck Custom Tables, Inc. Schedule of cost of goods manufactured For the month Ended December 31, 20XX 5 Beginning Raw material 6 Add: Purchase of raw material 7 Less: Ending raw material 8 Less: Indirect material 9 Direct labor 10 Manufacturing overhead applied 11 Total manufacturing cost 12 Add: Beginning work in process 13 Less: Ending work in process 14 15 16 17 18 19 20 21 22 23 0 22000 11180 Alignment E > Number Insert v Delete Conditional Format as Cell Formatting Table Styles Format Styles Cells F G H Thunderduck Custom Tables, Inc. Cost of goods sold For the month Ended December 31, 20XX Beginning finished goods Add: Cost of goods manufactured Less: Ending finished goods Unadjusted cost of goods sold Add: underapplied manufacturing overhead Less: overapplied manufacturing overhead Adjusted cost of goods sold DEM Comments Share Sort & Find & Analyze Sensitivity Filter Editing Select Data Analysis Sensitivity K L Thunderduck Custom Tables, Inc. Income Statement For the month Ended December 31, 20XX General Journal T-accounts (General Ledger) Schedule of COGM, COGS & Income Ready Accessibility: Investigate + 100%