This mini-case on Job costing needs to be completed in-class today (10/16/2023) and turned in by the end of class. This should be completed in a group of 13 students. While everyone should work on the problem, only one copy per group needs to be submitted. Questions should be completed using the Excel Template provided in Canvas. The file should be submitted as a clearly labeled Excel file on Canvas under the Group Activity #2 assignment. Priya Allen is an owner, operator of the online fashion boutique, Evening, Gowns by Priya (EGP), which creates custom made-to-order evening gowns. Her gowns feature premium fabrics and notions and require substantial amounts of hand-sewing. Currently Priya rents commercial space to produce her product and employs 3 full-time employees. 2 of the employees work exclusively to make the evening. gowns, while the 3st employee handles the administration needs, sales, marketing, and customer service needs for the company. Priya tracks all costs using Job Costing, allocating manufacturing overhead costs monthly at a rate of 50% of direct labor costs. At the beginning of September 2022, EGP had the following assets on the books: 1. Raw Material Inventory $500 waterial curitiol 2. Work-in-process inventory 3. Finished Goods inventory $3,400 4. Cash and all other assets $0 $2,500 EGP had no outstanding debt5 on 9/1/22. On 9/1/22 there was one job that was in work-in-process with the following costs During September Job 1180 was completed. Jobs 1181 was started and complete and Job 1182 was started but not completed in September, During September, the following direct materials and direct. labor cost: Other important financial factors in September: 1. Total Raw Material purchases for the month were $3,000, 2. Maintenance costs for the sewing machines were $400. 3. Rent for the factory was $1,500. 4. Utility and Insurance payments for the factory were $250,3387 B BUS 373 Iniclass Activity 12 Job costing 40 points 5. General and Administrative expenses totaled $1,000. 6. Cash received from customers for Jobs 1180 and 1181 were $5,000 and $5,500 for a total of $10,500. 7. At the end of the month, EGP had no outstanding debts. During the month of September, Priya was contacted by Ms. Ronald, a potential customer wanting an intricate gown. Priya estimated the cost for this particular job as follows: Upon recelving the quoted price of $2,875 ( $2,300 cost plus $575 profit), Ms. Ronald was outraged claiming that she couid purchase the identical custom gown for $2,000 from a local competitor, Priya wondered how anyone could stay in business charging only $2,000 for a gown that cost her $2,300 to make, Assignment (Complete in the Excel Spreadsheet that accompanies this assignment) 1. Use the Job Sheet to record all costs allocated to each job started, in-process, and completed in September. 2. Record all transactions that occur in September using joumal entries and then posting to T accounts 3. Prepare the traditional Income Statement for the month of September (ignore taxes). 4. Explain Prlya's reasoning for refusing to make and sell the gown to Ms. Ronald. Under what circumstances should Prlya consider selling the gown to Ms. Ronald for $2,000
