Wild Bird Inc. is a small producer of custom birdhouses in London, Ontario. It uses a job order costing system because each birdhouse is custom build for its owner and therefore receives varying attention and effort from the two departments, building and finishing. Wild Bird Inc. uses a perpetual inventory system. Wild Bird Inc. had the following post-closing trial balance as of December 31, 2021: Cash $30,367 Accounts Receivable 21,330 Raw Materials Inventory ? Work in Process Inventory ? Finished Goods Inventory ? Unexpired Insurance 11,221 Office Equipment 35,000 Accumulated amortization - Office Equipment $3,500 Factory Equipment 666,000 Accumulated Amortization - Factory Equipment 305,000 Accounts Payable 21,981 Wages and Salaries Payable 1,050 Accrued Utilities 2,600 Accrued Property Taxes 3,250 Capital Stock 170,000 Retained Earnings ? ? ?

Work in process: Job order Dep't Direct Direct Factory Total Numb er Material s Labour Overhea d Cost 19-17 Buildin g $2,740. 00 $1,075. 00 $1,60 0.00 $5,415. 00 Finishi ng $387. 00 $400.0 0 $250. 00 $1,03 7.00 $6,452. 00 Finished goods: Stock # Reference Quantity Unit Cost Total Cost X-1 Job 19-15 300.00 78.0 0 $ ? X-2 Job 19-16 812.00 22.0 0 $? $? Raw materials: RM Type Quantity Unit Cost Total Cost A 5,115 ?___(A) ? B 11,325 ?___(B) ? C 700 ?___(C) ? Supplie s Various $3,150 .00 ? 2

ACCT 3022 Summer 2022 Labour costs and overhead costs: The hourly rate including benefits for Building is $_____(D) and for finishing is $______(E). To cost jobs as they are worked on, a predetermined or budgeted overhead rate was computed for 2022 based on the following budgeted cost drivers: Building department 50,200 machine hours Finishing department $172,000 of direct labour These overhead rates will be used throughout the year by each department. All overhead will be applied to all jobs worked on during the year in proportion to the machine-hour and/or direct-labour cost devoted to each job. Wild Bird Inc. rents its factory building. This budget was prepared after careful consideration of the sales outlook for the coming year. The forecasted budget consisted of the following items: Wild Bird Inc. Factory Overhead Budget For The Year Ended December 31, 2022 Building Finishing Total Variable costs: Supplies $14,200 $5,400 $19,600 Indirect Labour 22,800 16,800 39,600 Utilities 30,000 8,000 38,000 Repairs 24,000 6,000 30,000 Misc. 19,000 11,000 30,000 110,000 47,200 157,200 Fixed costs: Insurance 7,000 4,620 $11,62 0 Amortization 90,000 14,400 104,40 0 Rent 24,000 13,000 37,00 0 Property taxes 4,980 1,200 6,180 Supervision 10,000 15,900 25,900 135,980 49,120 185,100 Total Factory Overhead $245,98 0 $96,320 $342,30 0 3

ACCT 3022 Summer 2022 FOH rate = budgeted FOH budgeted cost driver TRANSACTIONS: The following transactions occurred during the month of January 2022: 1. Purchases of raw materials (on account): RM Type Units $$ Receiving report # 101 2 A 5,000 ? Receiving report # 101 3 B 6,000 ? Receiving report # 101 4 A 2,500 ? Receiving report # 101 5 B 5,000 ? Receiving report # 101 6 C 2,125 ? Receiving report # 101 7 B 3,000 ? Receiving report # 101 8 Supplie s N/A $3,045.0 0 Assume that costs have not changed in the last year. 2. Returns on account: 41 units of material B. (receiving report #1019) 3. The direct material requisitions were summarized, and the following data were shown on a material usage report. Building Department Direct Material Usage For the Month Ended January 31, 2022 Requisitio n RM Type Job Order Quantity M89 B 19-18 1,500 M90 A 19-19 3,017 4

ACCT 3022 Summer 2022 M91 A 19-20 800 M92 B 19-20 1,000 M93 B 19-19 3,000 M94 B 19-18 200 M95 A 19-21 1,900 5

ACCT 3022 Summer 2022 Finishing Department Direct Material Usage For the Month Ended January 31, 2022 Requisitio n Type Job Order Quantity A301 C 19-17 5 A302 C 19-20 200 A303 C 19-18 800 A304 C 19-19 1,500 A305 C 19-20 20 4. A summary of payroll costs incurred as per the time tickets is as follows: Actual Labour Hours Worked For the Month Ended January 31, 2022 Work Job Ticket Order Buildin g Finishin g ML480 19-18 4 ML481 19-18 3 00 ML482 19-20 2 00 ML483 19-19 2 40 ML484 19-21 1 00 ML485 19-20 20 AL60 19-17 4 AL61 19-19 1,400 AL62 19-18 100 AL63 19-20 200 AL64 19-19 40 Total direct labour 864 1,744 Other payroll costs: Buildin g Finishin g Total 6

ACCT 3022 Summer 2022 Indirect labour $2,000 $1,500 $3,50 0 Factory Supervision $1,200 $1,600 $2,80 0 Selling and admin. Wages $6,00 0 5. Apply overhead to jobs. See data for item 6 to obtain machine hours worked. (A direct laborer operates more than one machine simultaneously, so machine hours are not necessarily equal to labour hours incurred by Builders). 6. Use the following information to (a) record the completion and (b) the sale of the items: Wild Bird Inc. Production and Sales Data For the Month Ended January 31, 2022 Job Finished Date Mach Stock Invoice Sold Sales # Units Finished Hours Number Number Units Revenue 19-15 300 Dec. 11/21 n/a X-1 #923 200 $40,000 19-16 812 Dec. 15/21 n/a X-2 #92 4 800 36,000 19-17 50 Jan. 5/22 0 X-3 #9 25 20 6,800 19-18 1750 Jan. 12/22 3,000 X-4 #92 6 900 24,400 19-19 1000 Jan. 19/22 2,000 X-5 #92 7 950 75,000 19-20 100 Jan. 30/22 150 X-6 #9 28 49 8,500 19-21 Unfinished 800 5,950 $190,700* *All sales are on account. 7. Gross payroll (factory and office) of $41,006 is paid in cash. 7

ACCT 3022 Summer 2022 8. The following additional overhead costs were incurred during January: Selling Item Total Building Finishin g & Admin. Account to Credit Supplies requisitioned $2,100 $1,600 $400 $100 ? Utilities 4,000 2,700 800 500 Accrued utilities Repairs by outsiders 3,000 2,350 600 50 A/P Miscellaneous 3,000 2,000 900 100 A/P Insurance 1,000 600 200 200 ? Amortization on equip. 11,000 9,500 1,200 300 ? Rent 4,000 2,000 1,400 600 A/P Property taxes 800 450 250 100 Accr. prop. Taxes $28,90 0 $21,200 $5,750 $1,950 9. Utility bills received $2,744 (DR Accrued utilities and CR A/P). 10. Utility bills paid, $2,364. 11. Other selling and administrative expenses incurred, $12,000. 12. Other payments on account, $61,950. 13. Collections on account, $119,547. 14. Close under- or over-applied Factory Overhead to Cost of Goods Sold. 8

ACCT 3022 Summer 2022 REQUIRED: You should use Excel to complete your assignment. 1. Enter all starting balances in the GL and subledgers. You will need to calculate your raw materials inventory value (about $30,000) based on your assigned variables. Adjust retained earnings to balance the opening trial balance. Round all totals to the nearest dollar and all per unit numbers to two decimal places. 2. Journalize the above summary transactions, all dated January 31, 2022. (No new balance sheet accounts are required. You should need to add only the following temporary accounts: Revenue, Cost of Goods Sold, Selling & Administrative Expense, Factory Overhead.) 3. Post to the general ledger and subledgers for January 31, 2022. (It is recommended that you post as you go, especially for accounts that have subledgers.) 4. Prepare a Pre - Closing trial balance as of January 31, 2022.(This trial balance should include all the income statement accounts). 5. Prepare schedules that reconcile the raw materials, goods in process and finished goods subledgers with the general ledger accounts as of January 31, 2022. A reconciliation template has been provided. 6. Prepare a Statement of Cost of Manufacturing for January 31, 2022. Please use the Chapter 3 version of Statement of Cost of Manufacturing suited for a Job Costing scenario. 7. Prepare an income statement and statement of retained earnings for January 31, 2022. 8. Prepare a balance sheet as of January 31, 2022. 9. Prepare and post a closing entry (or entries) for the month end. 10. Order your submission as follows: Cover sheet with group members and your variables. Journal entries General ledger Subledgers Trial balance