Requirement $2$

Use the information provided to complete the journals below use job$-$order costing for Julie's projected expenses Requirement $2$

Use the information provided to complete the journals below use job$-$order costing for Julie's projected

$\backslash$table$[[$Date$,$Account$/$Explanation$,$Debit,Credit$],[($a$)],[,$Purchased ingredients$/$materials on account,,$],[($b$)],[,,,],[,$Use materials to make $60$ wedding cakes in the first month,,$],[($c$)],[,,,],[,,,],[,$Incur wages to make $60$ wedding cakes in the first month,,$],[($d$)],[,,,],[,,,],[,,,],[,,,],[,$Incur manufacturing overhead costs,,$]]\backslash$table$[[($e$),,,],[,,,],[,$Allocated manufacturing overhead for the wedding cake,,$],[,\backslash$table$[[$Use the template to the right to show how you calculated$],[$the MOHR$]],,],[,,,],[($f$),,,],[,,,],[,$Record Cost of Goods Manufactured $($assume all $60$ cakes are complete$),,],[,\backslash$table$[[$HINT: Add together the cost for the wedding cake$],[($DM$/$DL$/$MOH$)]],,],[,,,],[($g$),,,],[,,,],[,$Record revenue from sale of $50$ wedding cake,,$],[,,,],[($h$),$Record COGS from sale of $50$ wedding cake,,$],[,\backslash$table$[[$Use the template to the right to show how you calculated$],[$the COGS$]],,]]($e$)$ Compute the predetermined overhead allocation rate for fiscal year $2024$ assuming a plant$-$wide rate is used.

$($h$)$ Compute the cost per wedding cake to find the total COGS Julie does not have enough money to hire a Managerial Accountant, so she must track her

business expenses herself. First think about what type of costing system would be more

beneficial for Julie. She chooses to use Excel to track all her business transactions. To test this

out, she has prepared an estimate of her purchases for the first month of business below. This

will help her have a better understanding of how to track the flow of her inventory.

a$.$ Purchase $$10,000$ in ingredients $($Sugar$,$ Butter, Eggs, Milk, Baking Powder, Flour$)$ and

$$5,000$ in other supplies$/$materials $($Cake Boxes, Latex Gloves for Bakers$)$ to get started.

b$.$ Each wedding cake that will require $$125$ in ingredients, $$10$ for a cake box, and $$15$ in

other supplies$/$materials$.$ Julie plans on producing $60$ weddings cakes in the first month.

c$.$ The wedding cake will take $6$ hours to make, and Julie estimates she will pay bakers

$$\frac{20}{h}r.$ Julie's salary will be $$5000$ for the first month.

d$.$ Julie expects the first month's utilities to be $$500,$ rent to be $$2000,$ insurance to be

$$100,$ and bakery equipment depreciation to be $$1000.$

e$.$ Julie would like to use a bakery$-$wide rate for manufacturing overhead allocation using

direct labor hours. She estimates that total Manufacturing Overhead will be $$100,000$

and direct labor hours will be $5000$ hours for the year.

f$.$ Calculate the total manufacturing cost of the wedding cake by adding together the direct

materials, direct labor, and allocated manufacturing overhead for the job.

g$.$ Julie plans to sell $50$ wedding cakes for $$800$ each.

h$.$ Calculate the cost per cake to find the Cost of Goods Sold for $50$ Cakes.