Sweet Wave Bakery $($SWB$)$ is a private corporate that was formed to provide cakes, breads and other sweets to commercial businesses and private individuals. It is located in Chicago, IL and manufactures the products in the home location and ships the product to retail outlets across the United States. It also has a division that provides onsite bakery installation and warranty services.

SWB$$s mission is to provide high quality bakery products to satisfy their customers needs and to be recognized as a positive impact in the community. Because of its quality products and community involvement, the company has been growing quickly and is always looking for ways to expand their product line and continue to grow while still remaining profitable.

Sweet Wave Bakery was founded by Sally Wasterton who is the company president and CEO. Sally$$s brother, Mark, has been working with Sally from the beginning developing new ideas and new recipes for the bakery. Mark is the Vice President of the company with Rolando Garras acting as the factory manager. Rolando is responsible for hiring line managers in the Chicago plant and Vice President Laila Jackson is responsible for the local divisions that install bakery equipment. SWB has a centralized human resources department that is managed by Pat Wilmington. The CFO of the organization, Rebecca Martinez, is in charge of the accounting and finance department. Rebecca has a small staff of CPA$$s working for her.

The following has been pulled from the financial records of Sweet Wave Bakery for the month of November $20$X$6.$

Accounts Receivable

$ $275,000$

Advertising Expenses

$54,000$

Cash

$260,000$

Depreciation$$Factory Equipment

$16,800$

Depreciation$$Office Equipment

$2,400$

Direct Labor

$42,000$

Factory Supplies Used

$16,800$

Factory Utilities

$10,200$

Finished Goods Inventory, November $30$

$68,800$

Finished Goods Inventory, October $31$

$72,550$

Indirect Labor

$48,000$

Office Supplies Expense

$1,600$

Other Administrative Expenses

$72,000$

Prepaid Expenses

$41,250$

Raw Materials Inventory, November $30$

$52,700$

Raw Materials Inventory, October $31$

$38,000$

Raw Materials Purchases

$184,500$

Rent$$Factory Equipment

$47,000$

Repairs$$Factory Equipment

$4,500$

Salaries

$325,000$

Sales

$1,350,000$

Sales Commissions

$40,500$

Work In Process Inventory October $31$

$52,700$

Work In Process Inventory, November $30$

$42,000$

Sweet Wave was able to secure some large orders to supply bakery goods for $2$ special events, G$52$ and R$5.$ Both of these projects will require special order cakes. Sweet Wave decided to use a job cost system to produce the cakes. The following information relates to G$52$ and R$5$ for $20$X$6.$

December $2$: Raw materials were requisitioned from the company$$s inventory for $$5,061$

December $8$: Raw materials were requisitioned for $$1,059$

December $14$: Raw materials were requisitioned for $$3,459.$

In each instance, two$-$ thirds $(2/3)$ of these materials were for G$52$ and the rest for R$5.$

Payroll:

Time worked on these two projects were recorded electronically by employees. The total amount of hours worked on the projects were as follows:

$6$ employees that are paid $$16\mathrm{.}50$ per hour worked $18$ hours $($total$)$ for both projects. The time tickets were dated December $3,$ December $9,$ and December $15.$

On each of those days, $6$ labor hours were spent on these jobs, two$-$thirds $(2/3)$ for G$52$ and the rest for R$5.$

Sweet Wave Bakery has decided to allocate overhead based on the machine hours. The expected machine hour use for the year is $2,112$ hours, and the anticipated overhead costs are $$840,576$ for the year.

The machines were used by workers on projects R$5$ and G$52$ on December $3,9,$ and $15.$

Six machine hours were used for project R$5(2$ each day$),$ and $8\mathrm{.}5$ machine hours were used for project G$52(2\mathrm{.}5$ the first day and $3$ each of the other days$).$ Both of these special orders were completed on December $15,$ producing $237$ pies for G$52$ and $142$ pies for R$5.$

Additional job order activities during this period of time included:

Dec. $1$ Purchased raw materials from Dawson Wheat Company on account for $$53,200.$

Dec. $2$ Issued $$40,000$ of direct materials from the company$$s inventory to jobs other than R$5$ and G$52$ and $$3,000$ of indirect materials.

Dec. $12$ Paid Sweet Wave Bakery$$s factory salaries and wages in the amount of $$65,000.$

Dec. $13$ Paid the factory$$s water bill of $$9,000.$

Dec. $18$ Transferred $$50,000$ of costs from other completed jobs to finished goods.

Dec. $21$ Paid the factory$$s electric bill of $$12,000$ for Sweet Wave$$s factory.

Dec. $31$ Made adjusting entries for the factory that included accrued property taxes of $$12,000,$ prepaid insurance of $$8,800,$ and accumulated depreciation of $$16,000.$

Instruction $($A$)$

$($a$)$ Set up the job cost sheets for Job No$.$ G$52$ and Job No$.$ R$5.$ Determine the total cost for each manufacturing special order

$($b$)$ Journalize the activities activities from these job cost sheets in the general journal. Also journalize the other costs that occurred duri