REQUIRED:

0.Calculate the Predetermined Manufacturing Overhead (PDMOH) Rate

Use the Manufacturing Overhead Budget (MOH-Accountant Tab) to calculate the predetermined overhead rate to be used for the day.

Where is budgeted manufacturing overhead recorded in the T-Accounts?

1.Purchase Raw Materials Inventory

A shipment of materials has just been delivered to the production facility, and the purchase has already been recorded on the Trial Balance as journal entry (2).

2.Use Raw Materials

Use the information provided in the product datasheet tab to complete a Materials Requisition(s). Provide the materials requisition form(s) to the warehouse to receive your materials.

Create your "virtual" bracelet. Follow the assembly instructions on the Product Datasheet Tab. Use the quantities from your "virtual" bracelet to complete the Materials Requisition Tab.

Record the direct materials used on the Job Cost Record. (Create Excel Formulas Linking to Material Requisition)

Record the direct materials used on the Trial Balance as journal entry (3).

3.Manufacture the Product

Track the direct labor time on individual Time Cards.

It takes you 5 minutes to make a single bracelet and you earn a wage of $9/hr.

Record direct labor used on the Job Cost Record.

Record the direct labor used on the Trial Balance as journal entry (4).

NOTE: Assume your workers will not be paid until next month.

4.Record Actual Manufacturing Overhead

Assume that actual manufacturing overhead costs were the same as budgeted manufacturing overhead costs (located in the Manufacturing Overhead Budget). The only difference between actual and budgeted manufacturing overhead was that KU charged a cleanup fee, so the facility rent increased from $500 to $525.

a.The entry to record actual manufacturing overhead costs incurred throughout the day on the Trial Balance has been recorded for you as journal entry (5a). Assume you paid the facility rent in cash, but that your employees will not be paid until next month. Make sure you can follow how this entry is being made and why!

5.Apply Manufacturing Overhead

Manufacturing overhead is applied on the basis of direct labor hours (the cost driver).Calculate the amount of manufacturing overhead that should be allocated to your batch of Hawklets^TM.

b.Record the manufacturing overhead applied on the Job Cost Record.

c.Record the manufacturing overhead applied on the Trial Balance as journal entry (5b).

d.We will not close the temporary manufacturing overhead account for purposes of this project.

6.Complete Production

Congratulations! You've finished production and are ready to ship the finished product to the distribution center.

Complete the Job Cost Record by determining the total cost for the batch and the cost per unit.

Record the transfer of inventory to the distribution center on the Trial Balance as journal entry (6).

7.Sell the Product

Assume the Hawklets^TM sell for $10 per bracelet and your team sells one bracelet to a classmate, who pays cash.

Prepare a Sales Invoice for the sale.

Record the sale on the Trial Balance as journal entry (7).

8.Record Period Costs

Brainstorm one period cost that ACCT 201 Industries, Inc. would incur on a typical day.

Record the period cost on the Trial Balance as journal entry (8).

Write a brief description of the transaction:

9.Prepare a Schedule of Cost of Goods Sold

Use the information gathered to prepare a Schedule of Cost of Goods Sold for the day using Microsoft Excel.Use the format shown on page 8 of the Chapter 4 Course Packet. Practice using formulas wherever possible, and format the Schedule professionally, using dollar signs or other formatting where necessary. You will need to create a new tab in your Excel File to complete this requirement.

10.Prepare a Traditional Income Statement

Use the information recorded in the t-accounts to prepare a traditional Income Statement for the day using Microsoft Excel. Practice using formulas wherever possible, and format the Statement professionally, using dollar signs or other formatting where necessary. You will need to create a new tab in your Excel File to complete this requirement.

11.Extra Credit: Prepare a Balance Sheet

For two points of extra credit, use the information recorded in the t-accounts to prepare a Balance Sheet as of the end of the day using Microsoft Excel. Practice using formulas wherever possible, and format the Balance Sheet professionally, using dollar signs or other formatting where necessary.

Remember, Net Income from the Income Statement increases Retained Earnings.

Manufacturing Overhead is a temporary Inventory account, but for purposes of this project, we did not close MOH to COGS Expense. Included it as an Inventory account on the Balance Sheet.

Hawklets "are customizable bracelets, sold individually. Your production team is responsible for producing one job with two bracelets. You may be creative and customize the bracelets Assembly Instructions 1. Measure your writst (to the best of your ability) and use that length to record the length of the bracelet you are "virtually " making. 2. Be creative! Think of colors or a phrase that you would like to have on your bracelet with any of the beads you would like. The bracelet should include a mix of lettered beads and colorful beads. Use the template below to keep track of your beads! 3. Package your "virtual" bracelets together in one plastic bag. Virtual Bracelet! Required Materials Unit Price Elastic Cording S 0.0018 per cm Letter Beads S 0.0043 per bead Colorful Beads S 0.0035 per bead Ziplock Bags S 0.0366 per bag Examples and Ideas Jayhawk-Themed: Rock Chalk, Crimson & Blue, Jayhawks, KU, Kansas, Beware of the Phog, etc. Inspirational Sayings: Dream Big, Goal Digger, Go Getter, Hustle, Boss Babe, etc. Names and Nicknames Product Datasheet MOH - Accountant Materials Requisition - Super Time Card - DL Job Cost Record - Super Trial Balance - Accountant Sales Invoice - Accountant +MANUFACTURING OVERHEAD BUDGET for ONE DAY Calculate the predetermined overhead rate (PDMOH rate) based on one eight-hour day of production. Manufacturing overhead is allocated on the basis of direct labor hours since the production of Hawklets "is a labor-intensive process. TYPE THE LAST 4 NUMBERS OF YOUR STUDENT ID HERE Cost Driver Estimated direct labor hours " 4800 Hours Budgeted Manufacturing Overhead Costs for One Day of Production Facility Rent $ 500.00 Equipment Depreciation Indirect Labor 4 56.25 Indirect Materials 9.70 Total Budgeted Manufacturing Overhead S 565.95 Predetermined Manufacturing Overhead Rate (Round your answer to the fourth decimal place, $0. 1234) per minute Estimated based on 8 direct labor hours in a day and 10 direct laborers working per day. 1 "Facility used to manufacture ACCT 201 Industries, Inc. product is rented at a rate of $250 for a four-hour block. Equipment Depreciation includes depreciation on the measuring tape and scissors, assuming the equipment can be used for 30 days before being replaced Indirect Labor includes production supervision, warehouse management and cost accounting services. " Indirect Materials include the small cups to transport beads.MATERIALS REQUISITION Job No. #SPILL! Requisitor No. DM - 1 Direct Materials Quantity Unit Price Total Cost Total Direct Material CostTIME CARD Employee Week Date Job No. Start Time End Time Hours Wage Rate Total Cost TIME CARD Employee Record No. 1 Week 0 Date Job No. Start Time End Time Hours Wage Rate Total Cost\fQuantity Item Hawklet Bracelets Date Started Date Completed Manufacturing Cost Information Total Cost Direct Materials: Direct Labor: Manufacturing Overhead: Total Job Cost $ Number of Units Cost per Unit $TRIAL BALANCE BALANCE SHEET ACCOUNTS Cash Accounts Receivable Raw Materials Inventory Ball 5,000.00 27.98 (1) (2) 34.25 525.00 (5a) 9.70 (5a) Work in Process Inventory Finished Goods Inventory Manufacturing Overhead (5a) 500.00 (5a) 0.00 (5a) 56.25 (5a) 9.70 Property, Plant & Equipment Accumulated Depreciation Accounts Payable (1) 27.98 34.25 (2) 0.00 (5a) Wages Payable Common Stock Retained Earnings 6,000.00 Ball 56.25 (5a)\fACCT 201 INDUSTRIES, INC. SALES INVOICE HAWKLETS TM Date Customer Quantity Description & Job No. Unit Price Total Subtotal Shipping & Handling Total Due All payments due upon receipt of product. Thank you for your business