Rock Chalk Tees sews and prints soft T-shirts. All shirts go through two production departments. The Sewing department (SEW) first sews together the pre-cut strips of soft fabric and then the Ironing department (IRON) irons a design onto the t-shirt.
The company uses a normal, job-order costing system, and overhead is applied using two departmental rates. The rate for SEW is $18.00 per direct labor hour (DLH) and the rate for IRON is $12.50 per machine hour (MH). Company policy is to close any over- or underapplied overhead directly to Cost of Goods Sold at the end of each month.
In this packet are job cost reports and copies of selected source documents for the month of March. At the beginning of March, two jobs were already in production (#201 and #202). During March, Rock Chalk Tees started two additional jobs (#203 and #204).
Required:
Complete the companys Job Cost Reports using the information provided in the packet.
Calculate the following amounts for the month of March:
Ending Work-in-Process balance Cost of goods manufactured Over-/underapplied overhead Cost of goods sold AFTER adjusting for any over-/underapplied overhead
Prepare an income statement for March. The companys income tax rate is 25%
Rock Chalk Tees: Job Cost Sheet Rock Chalk Tees: Job Cost Sheet Job \#: 203 Date Started: Description: \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{3}{|c|}{ Direct Material } & \multicolumn{4}{c||}{ Direct Labor } & \multicolumn{4}{c|}{ Manufacturing Overhead } \\ \hline Date & Req\# & Amount & Date & Dept & Hrs & Rate & Amount & Date & Dept & Base & Hrs & Rate & Amount \\ \hline & & $ & & & & $ & $ & & & & & $ & $ \\ \hline & & & & & & & & & & & & & \\ \hline \end{tabular} Completed Job Cost: \$ Date Sold: Completed Job Cost: \$ Date Sold: Selected Source Documents for March \begin{tabular}{|ccr|} \hline & Materials Requisition & \#R1222 \\ Date & Description & Amount \\ \hline 3/6/23 & Fabric - for Job 202 & $800 \\ \hline \end{tabular} \begin{tabular}{|ccr|} \hline & Materials Requisition & \#R1224 \\ Date & Description & Amount \\ \hline 3/15/23 & Fabric - for Job 203 & $920 \\ \hline \end{tabular} \begin{tabular}{|ccr|} \hline & Materials Requisition & \#R1223 \\ Date & Description & Amount \\ \hline 3/7/23 & Fabric - for Job 203 & $490 \\ \hline \end{tabular} \begin{tabular}{|ccc|} \hline \multicolumn{3}{|c}{ Inventory Move Authorization } \\ Date & Job\# & Move To \\ \hline 3/16/23 & 201 & Finished Goods \\ 3/16/23 & 202 & Finished Goods \\ \hline \end{tabular} Selected Source Documents for March \begin{tabular}{|ccr|} \hline & Materials Requisition & \#R1227 \\ Date & Description & Amount \\ \hline 3/19/23 & Fabric - for Job 203 & $150 \\ \hline \end{tabular} \begin{tabular}{|ccc|} \hline & \multicolumn{2}{c|}{ Production Order } \\ Date & Job \# & Description \\ \hline 3/23/23 & 204 & 1,500 Shirts for Graduation \\ \hline \end{tabular} \begin{tabular}{|ccc|} \hline \multicolumn{3}{|c|}{ Inventory Move Authorization } \\ Date Job \# & Move To \\ \hline 3/24/23 & 203 & Finished Goods \\ \hline \end{tabular} Rock Chalk Tees Lawrenco, KS (785) 555 -1234 Invoice 153 3/30/2023 Sold To: KU Bookstore \begin{tabular}{|ccc|} \hline & Materials Requisition & \#R1228 \\ Date & Description & Amount \\ \hline 3/26/23 & Fabric - For Job 204 & $1,980 \\ \hline \end{tabular} \begin{tabular}{cc} Description & Total Amt. \\ \hline Job \#202: 1,200 Shirts for Basketball Season & $23,200 \\ Total & $23,200 \\ \hline \end{tabular} \begin{tabular}{|ll|} \hline 3/31/23 & Recorded depreciation on manufacturing equipment $200 \\ \hline \end{tabular} Rock Chalk Tees: Job Cost Sheet Rock Chalk Tees: Job Cost Sheet Job \#: 203 Date Started: Description: \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{3}{|c|}{ Direct Material } & \multicolumn{4}{c||}{ Direct Labor } & \multicolumn{4}{c|}{ Manufacturing Overhead } \\ \hline Date & Req\# & Amount & Date & Dept & Hrs & Rate & Amount & Date & Dept & Base & Hrs & Rate & Amount \\ \hline & & $ & & & & $ & $ & & & & & $ & $ \\ \hline & & & & & & & & & & & & & \\ \hline \end{tabular} Completed Job Cost: \$ Date Sold: Completed Job Cost: \$ Date Sold: Selected Source Documents for March \begin{tabular}{|ccr|} \hline & Materials Requisition & \#R1222 \\ Date & Description & Amount \\ \hline 3/6/23 & Fabric - for Job 202 & $800 \\ \hline \end{tabular} \begin{tabular}{|ccr|} \hline & Materials Requisition & \#R1224 \\ Date & Description & Amount \\ \hline 3/15/23 & Fabric - for Job 203 & $920 \\ \hline \end{tabular} \begin{tabular}{|ccr|} \hline & Materials Requisition & \#R1223 \\ Date & Description & Amount \\ \hline 3/7/23 & Fabric - for Job 203 & $490 \\ \hline \end{tabular} \begin{tabular}{|ccc|} \hline \multicolumn{3}{|c}{ Inventory Move Authorization } \\ Date & Job\# & Move To \\ \hline 3/16/23 & 201 & Finished Goods \\ 3/16/23 & 202 & Finished Goods \\ \hline \end{tabular} Selected Source Documents for March \begin{tabular}{|ccr|} \hline & Materials Requisition & \#R1227 \\ Date & Description & Amount \\ \hline 3/19/23 & Fabric - for Job 203 & $150 \\ \hline \end{tabular} \begin{tabular}{|ccc|} \hline & \multicolumn{2}{c|}{ Production Order } \\ Date & Job \# & Description \\ \hline 3/23/23 & 204 & 1,500 Shirts for Graduation \\ \hline \end{tabular} \begin{tabular}{|ccc|} \hline \multicolumn{3}{|c|}{ Inventory Move Authorization } \\ Date Job \# & Move To \\ \hline 3/24/23 & 203 & Finished Goods \\ \hline \end{tabular} Rock Chalk Tees Lawrenco, KS (785) 555 -1234 Invoice 153 3/30/2023 Sold To: KU Bookstore \begin{tabular}{|ccc|} \hline & Materials Requisition & \#R1228 \\ Date & Description & Amount \\ \hline 3/26/23 & Fabric - For Job 204 & $1,980 \\ \hline \end{tabular} \begin{tabular}{cc} Description & Total Amt. \\ \hline Job \#202: 1,200 Shirts for Basketball Season & $23,200 \\ Total & $23,200 \\ \hline \end{tabular} \begin{tabular}{|ll|} \hline 3/31/23 & Recorded depreciation on manufacturing equipment $200 \\ \hline \end{tabular}
