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Use the calculations in a) through g) below to complete the Jobs Report here. Use whole dollar amounts except for Gross Margin % Lock-Tite Company Jobs Report - Traditional OH allocation (DL dollars) Year Ending December 31 JV28 BY92 ZF14 Sales Revenue From be) Job Costs: Direct Material Start here in 6a) Direct Labor From 6b) Overhead From 6c) Total Job Costs/COGS DM+DL+OH Gross Margin Sales - COGS Gross Margin % GM/Sales a) Direct Material: Job JV28 used 8% of the company's Direct Material (amount from JE 1b), Job BY92 used 6% and Job ZF14 used 4% the company's Direct Material. Use these percentages and calculate the Direct Material for each job. The combined total for the three jobs WILL NOT agree to the total costs because Lock-Tite has other jobs they sold as well as jobs that are still in inventory. Include these amounts in the Jobs Report above. Job JV28 Job BY92 Job ZF14 Total DM From JE Ib (Direct only) % used by job 8% 6% 4% Given above DM per job Calculate (multiply) b) Direct Labor: 8% of the company's actual Direct Labor costs were spent on Job JV28. Job BY92 and ZF14 each used 3% and 2%, respectively. Use these percentages and calculate the Direct Material for each job. Include these amounts in the table above. lob JV28 Job BY92 Job ZF14 Total DL From JE Ic (Direct only) % used by job 4% 3% 2% Given above DL per job Calculate (multiply) c) Factory Overhead; Use the 55% of direct labor dollars and calculate the overhead as it would be applied using a plantwide predetermined rate. Include the amounts in the Jobs Report above for Overhead Cost. Job JV28 Job BY92 Job ZF14 DL per job Calculated in 6b bottom Predetermined rate 0.55 0.55 0.55 given in connect FOH per job Calculate (multiply)Ref. Account Debit Credit a) Raw Material purchased on account a Raw Material Inventory 171,000 Cash 171,000 b) Raw Material used as direct and indirect material b Work in Process Inventory 144,000 Factory Overhead 9,000 Raw Material Inventory 153,000 c) Recognition of direct and indirect labor owed to employees C Work-in Process Inventory 154,000 Factory Overhead 46,000 Factory Wages Payable 200,000 d) Application of factory overhead to work-in-process d Work in Process Inventory 84,700 Factory Overhead 84,700 e) Recognition of Cost of Goods Manufactured e Finished Goods Inventory 373,400 Work-in Process Inventory 373,400 f) Recognition of Sales Revenue f Cash 1,600,000 Sales Revenue 1,600,000 g) Recognition of Cost of Goods Sold Cost of Goods Sold 390,000 Finished Goods Inventory 390,000 h) Incurrence of other overhead costs (use "various" to represent multiple accounts. h Factory Overhead 114,000 Accounts Payable 114,000
