You work for Thunderduck Custom Tables Inc. This is the first month of operations. The company designs and manufactures specialty tables. Each table is specially customized for the customer. This month, you have been asked to develop and manufacture two new tables for customers. You will design and build the tables. This is a no nail, no screw, and no glue manufacturing ( no indirect materials used). You will be keeping track of the costs incurred to manufacture the tables using Job #1 Cost Sheet and Job #2 Cost Sheet.
	The cost of the direct materials that can be used to manufacture the table are as follows. These cost are on a per unit basis.
		Table Top	$1,100.00
		Table Leg	$200.00
		Drawer	$310.00
	The company uses a job order costing system and applies manufacturing overhead to jobs based on direct labor hours.
	The company estimates that there will be 12 direct labor hours worked during the month.
	The estimated manufacturing overhead cost for the month is:
	a.	Factory supervisor salary per month	$3,000.00
	b.	Rent for the factory per month	$600.00
	c.	Depreciation of factory equipment per month	$600.00
		Total Estimated manufacturing overhead	$4,200.00
	What is the predetermined manufacturing overhead rate?	Blank 1
Step 2	The first order you received was to manufacture a table using a table top and four legs. This is your Job #1.
Step 3	The customer that has ordered Job #2, wants a table that is the same as Job #1, but wants to also add a drawer to the table.
Step 4	The following is a list of transactions that need to be recorded for the company for activity in the month of December. Record those in the "General Journal" tab of the excel file using the proper format. Please use the following accounts: Accounts Receivables, Raw materials, Work in process, Finished goods, Accumulated depreciation, Accounts payable, Salaries and wages payable, Sales revenue, Manufacturing overhead, Cost of goods sold, Salaries and wages expense, Advertising expenses, and Depreciation expense.
1-Dec	Raw Materials purchased on account, $11,000.
5-Dec	All Raw Materials needed for Job #1 were requisitioned from the material storage for use during the month. Assume all materials are direct. (After you journalize this entry please enter the information into Job #1 Cost Sheet)
10-Dec	The following employee costs were incurred but not paid during the month:
	There are three assembly employees that spend 2 hours each, $25 per hour to make the table for Job #1. (After you journalize this entry please enter the information into Job #1 Cost Sheet)
Salary for supervisor of the factory $3,500.
Administrative Salary $2,000.
15-Dec	All Raw Materials needed for Job #2 were requisitioned from the material storage for use during the month. Assume all materials are direct. (After you journalize this entry please enter the information into Job #2 Cost Sheet)
16-Dec	Rent for the month of December for the factory building incurred but not paid $600.
17-Dec	Advertising costs incurred but not paid for the month was $1,400.
20-Dec	Depreciation for the month of December was recorded on equipment was $750 ($150 for equipment used in the factory and the remainder for equipment used in selling and administrative activities).
22-Dec	Manufacturing overhead cost was applied based on direct labor hours to Job #1 based on the POHR determined on the "Job Cost Sheet". (After you journalize this entry please enter the information into Job #1 Cost Sheet)
26-Dec	Job #1 was completed and transferred to Finished Goods during the month.
28-Dec	The completed table from Job #1 was sold on account to the customer for $16,000 during the month. (Hint: Make sure to account for the cost of the table that was sold using the cost from the job cost sheet.)
31-Dec	Direct labor cost incurred but not paid for three employees to start manufacturing Job #2. The employees only worked one hour each, three hours total, $25 per hour during the month and they did not complete their work on the job. (After you journalize this entry please enter the information into Job #2 Cost Sheet)
31-Dec	Manufacturing overhead cost was applied based on direct labor hours to Job #2 based on the POHR. Only three direct labor hours were worked on Job #2 during the month. (After you journalize this entry please enter the information into Job #2 Cost Sheet)
31-Dec	Any underapplied or overapplied overhead for the month was closed out to Cost of Goods Sold.
Step 5	Post the journal entries that you recorded on the "General Journal" tab to the "T-accounts" tab. This is the company's first month of business, so there will not be any beginning balances. Compute the balance for each T-account after all of the entries have been posted.
Step 6	Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold on the "Schedule of COGM and COGS" tab for Job #1 and Job #2 that were worked on during the month by the company. Make sure to follow the format noted in your book (pg. 87). (Hint: This is the company's first month of operations and therefore the beginning balances will be zero.)
Step 7	Prepare an Income Statement for the month using the Traditional Format on the "Income Statement" tab.
Step 8	Answer the additional questions below
	Check Figure: Cost of Goods Manufactured= $4,150, Net operating income=$6,750
	What is the ending balance for raw materials?	Blank 2
	What is the ending balance for work in process?	Blank 3
	What is the ending balance for finished goods?	Blank 4
	What is the actual manufacturing overhead cost incurred during December before adjustment?	Blank 5
	What is the total applied manufacturing overhead cost during December before adjustment?	Blank 6
	What is the unadjusted cost of goods sold?	Blank 7
	Was the manufacturing overhead for the month of December overapplied/underapplied ?	Blank 8
	What is the amount of Manufacturing overhead overapplied/underapplied?	Blank 9
	What is the adjusted cost of goods sold?	Blank 10
	What is gross margin?	Blank 11
	What is the total prime cost for Job#1?	Blank 12
	What is the total conversion cost for job #1?	Blank 13
	What is the total product cost for job#1?	Blank 14
	What was the period cost incurred for the month of December?	Blank 15
	What is the total variable cost incurred for Job #1(assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)?	Blank 16
	What is the contribution margin for Job #1 (assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)?	Blank 17
	What would be the actual (not applied) total fixed manufacturing overhead cost incurred for the company for the month if the order in Job #1 is for five tables instead of one table assuming this cost is with in the relevant range?	Blank 18

Job Cost Sheet Job Number Date Initiated Item Date completed Direct Matarials Amount Direct Labor Hours Cost Summary Direct Materials Direct Labor Manufacturing Overhead Total Product Cost Unit Product Cost Rate Manufacturing Overhead Amount Hours Direct Materials: Manufacturing Overhead Rate Amount Materials: Job Cost Sheet Job Number Date Initiated Item Date completed Direct Matarials Amount Direct Labor Hours Cost Summary Direct Materials Direct Labor Manufacturing Overhead Total Product Cost Unit Product Cost Rate Manufacturing Ov Amount Hours Direct Materials: Manufacturing Overhead Rate Amount Date General Journal Description 1-Dec Raw Materials Account Payable 5-Dec Work in Process Raw Materials 10-Dec Manufacturing Overhead Work in Process Salary Expense Salary & Wages Payable 15-Dec Work in Process Raw Materials 16-Dec Manufacturing Overhead Account Payable 17-Dec Acdvertising Expense Account Payable 20-Dec Manufacturing Overhead Depreciation Accummulative Depreciation 22-Dec Work in Process Manufacturing Overhead 26-Dec Finish Goods Work in Process 28-Dec Account Receivable Sales Revenue Cost of Goods sold Finish Goods 31-Dec Work in Process Salary Payable 31-Dec Work in Process Manufacturing Overhead 31-Dec Cost of Goods sold Manufacturing Overhead Debit Credit $11,000 $11,000 $ 600 $ 600 $ 1,400 $ 1,400 $ $ 150 600 $ 750 $16,000 $16,000 Account Receivables Accounts Payable Raw Materials Salaries and Wages Payable Work In Process Finished Goods Manufacturing Overhead Accumulated Depreciation yable Sales Revenue es Payable Cost of Goods Sold Salaries and Wages Expense Advertising Expense Depreciation Expense Thunderduck Custom Tables, Inc. Schedule of cost of goods manufactured For the month Ended December 31, 20XX Direct materials: Beginning raw material Inventory Add: Purchase of Raw material Total Raw material available deduct: Ending raw material inventory Raw material used in production Direct Labor Mfg OH applied to Work in process Total Mfg costs Add: Beginning Work in process inventory Deduct: Ending Work in process inventory Cost of Goods Manufactured Thunderduck Custom Tables, Inc. Cost of goods sold For the month Ended December 31, 20XX Begin Finished Goods Inventory Add : Cost of Goods Manufactured Cost of Goods available for Sale Deduct : Ending Finished Goods inventory Unadjsuted Cost of Goods Sold Add: Underapplied Overhead Adjusted Cost of Goods Sold Thunderduck Custom Tables, Inc. Income Statement For the month Ended December 31, 20XX Sales Cost of Goods sold Gross Margin Selling & Admin Expense : Salaries expenses Depreciation expense Advertising expens Net Operating income Job Cost Sheet Job Number Date Initiated Item Date completed Direct Matarials Direct Labor Amount $ Hours 1,900 Manufacturing Overhead Rate 6 Amount 25 Cost Summary Direct Materials $ 1,900.00 Direct Labor $ 150.00 Manufacturing Overhead $2,100.00 Total Product Cost $ 4,150.00 Unit Product Cost $ 4,150.00 150 Hours 6 Direct Materials: Manufacturing Overhead Rate $350.00 Amount $2,100.00 Materials: Job Cost Sheet Job Number Date Initiated Item Date completed Direct Matarials Amount $ Direct Labor Hours 2,210 Rate 3 Amount 25 Cost Summary Direct Materials $ 2,210.00 Direct Labor $ 75.00 Manufacturing Overhead Manufacturing Ov $1,050.00 Total Product Cost $ 3,335.00 Unit Product Cost $ 3,335.00 Hours 75 3 Direct Materials: Manufacturing Overhead Rate Amount $350.00 $1,050.00 Date General Journal Description 1-Dec Raw Materials Account Payable 5-Dec Work in Process Raw Materials 10-Dec Manufacturing Overhead Work in Process Salary Expense Salary & Wages Payable 15-Dec Work in Process Raw Materials 16-Dec Manufacturing Overhead Account Payable 17-Dec Acdvertising Expense Account Payable 20-Dec Manufacturing Overhead Depreciation Accummulative Depreciation 22-Dec Work in Process Manufacturing Overhead 26-Dec Finish Goods Work in Process 28-Dec Account Receivable Sales Revenue Cost of Goods sold Finish Goods 31-Dec Work in Process Salary and wages Payable 31-Dec Work in Process Manufacturing Overhead 31-Dec Cost of Goods sold Manufacturing Overhead Debit Credit $11,000 $11,000 $ 1,900 $ 1,900 $ 3,500 $ 150 $ 2,000 $ 5,650 $ 2,210 $ 2,210 $ 600 $ 600 $ 1,400 $ 1,400 $ $ 150 600 $ 750 $ 2,100 $ 2,100 $ 4,150 $ 4,150 $16,000 $16,000 $ 4,150 $ 4,150 $ 75 $ 75 $ 1,050 $ 1,050 $ 1,100 $ 1,100 Predetermined OH Rate 350 per DLH Account Receivables $ 16,000 $ $ $ $ $ $ $ Raw Materials 11,000 $ 1,900 $ 2,210 $ 6,890 End Work In Process 1,900 $ 4,150 150 2,210 2,100 75 1,050 Finished Goods $ 4,150 $ 4,150 Manufacturing Overhead $ 3,500 $ 2,100 $ 600 $ 1,050 $ 150 $ 1,100 under applied Accumulated Depreciation Accounts Payable $ 11,000 $ 600 $ 1,400 Salaries and Wages Payable $ 5,650 $ 75 $ 750 yable Sales Revenue $ 16,000 es Payable Cost of Goods Sold $ 4,150 $ 1,100 Salaries and Wages Expense $ 2,000 Advertising Expense $ 1,400 Depreciation Expense $ 600 Thunderduck Custom Tables, Inc. Schedule of cost of goods manufactured For the month Ended December 31, 20XX Direct materials: Beginning raw material Inventory Add: Purchase of Raw material Total Raw material available deduct: Ending raw material inventory Raw material used in production Direct Labor Mfg OH applied to Work in process Total Mfg costs Add: Beginning Work in process inventory Deduct: Ending Work in process inventory Cost of Goods Manufactured 0 11000 11000 6890 4110 225 3150 7485 0 3335 4150 Thunderduck Custom Tables, Inc. Cost of goods sold For the month Ended December 31, 20XX Begin Finished Goods Inventory Add : Cost of Goods Manufactured Cost of Goods available for Sale Deduct : Ending Finished Goods inventory Unadjsuted Cost of Goods Sold Add: Underapplied Overhead Adjusted Cost of Goods Sold 0 4150 4150 0 4150 1100 5250 Thunderduck Custom Tables, Inc. Income Statement For the month Ended December 31, 20XX Sales Cost of Goods sold Gross Margin Selling & Admin Expense : Salaries expenses Depreciation expense Advertising expens Net Operating income 16000 5250 10750 2000 600 1400 6750 Job Cost Sheet Job Number Date Initiated Item Date completed Direct Matarials Direct Labor Amount $ Hours 1,900 Manufacturing Overhead Rate 6 Amount 25 Cost Summary Direct Materials $ 1,900.00 Direct Labor $ 150.00 Manufacturing Overhead $2,100.00 Total Product Cost $ 4,150.00 Unit Product Cost $ 4,150.00 150 Hours 6 Direct Materials: Manufacturing Overhead Rate $350.00 Amount $2,100.00 Materials: Job Cost Sheet Job Number Date Initiated Item Date completed Direct Matarials Amount $ Direct Labor Hours 2,210 Rate 3 Amount 25 Cost Summary Direct Materials $ 2,210.00 Direct Labor $ 75.00 Manufacturing Overhead Manufacturing Ov $1,050.00 Total Product Cost $ 3,335.00 Unit Product Cost $ 3,335.00 Hours 75 3 Direct Materials: Manufacturing Overhead Rate Amount $350.00 $1,050.00 Date General Journal Description 1-Dec Raw Materials Account Payable 5-Dec Work in Process Raw Materials 10-Dec Manufacturing Overhead Work in Process Salary Expense Salary & Wages Payable 15-Dec Work in Process Raw Materials 16-Dec Manufacturing Overhead Account Payable 17-Dec Acdvertising Expense Account Payable 20-Dec Manufacturing Overhead Depreciation Accummulative Depreciation 22-Dec Work in Process Manufacturing Overhead 26-Dec Finish Goods Work in Process 28-Dec Account Receivable Sales Revenue Cost of Goods sold Finish Goods 31-Dec Work in Process Salary and wages Payable 31-Dec Work in Process Manufacturing Overhead 31-Dec Cost of Goods sold Manufacturing Overhead Debit Credit $11,000 $11,000 $ 1,900 $ 1,900 $ 3,500 $ 150 $ 2,000 $ 5,650 $ 2,210 $ 2,210 $ 600 $ 600 $ 1,400 $ 1,400 $ $ 150 600 $ 750 $ 2,100 $ 2,100 $ 4,150 $ 4,150 $16,000 $16,000 $ 4,150 $ 4,150 $ 75 $ 75 $ 1,050 $ 1,050 $ 1,100 $ 1,100 Predetermined OH Rate 350 per DLH Account Receivables $ 16,000 $ $ $ $ $ $ $ Raw Materials 11,000 $ 1,900 $ 2,210 $ 6,890 End Work In Process 1,900 $ 4,150 150 2,210 2,100 75 1,050 Finished Goods $ 4,150 $ 4,150 Manufacturing Overhead $ 3,500 $ 2,100 $ 600 $ 1,050 $ 150 $ 1,100 under applied Accumulated Depreciation Accounts Payable $ 11,000 $ 600 $ 1,400 Salaries and Wages Payable $ 5,650 $ 75 $ 750 yable Sales Revenue $ 16,000 es Payable Cost of Goods Sold $ 4,150 $ 1,100 Salaries and Wages Expense $ 2,000 Advertising Expense $ 1,400 Depreciation Expense $ 600 Thunderduck Custom Tables, Inc. Schedule of cost of goods manufactured For the month Ended December 31, 20XX Direct materials: Beginning raw material Inventory Add: Purchase of Raw material Total Raw material available deduct: Ending raw material inventory Raw material used in production Direct Labor Mfg OH applied to Work in process Total Mfg costs Add: Beginning Work in process inventory Deduct: Ending Work in process inventory Cost of Goods Manufactured 0 11000 11000 6890 4110 225 3150 7485 0 3335 4150 Thunderduck Custom Tables, Inc. Cost of goods sold For the month Ended December 31, 20XX Begin Finished Goods Inventory Add : Cost of Goods Manufactured Cost of Goods available for Sale Deduct : Ending Finished Goods inventory Unadjsuted Cost of Goods Sold Add: Underapplied Overhead Adjusted Cost of Goods Sold 0 4150 4150 0 4150 1100 5250 Thunderduck Custom Tables, Inc. Income Statement For the month Ended December 31, 20XX Sales Cost of Goods sold Gross Margin Selling & Admin Expense : Salaries expenses Depreciation expense Advertising expens Net Operating income 16000 5250 10750 2000 600 1400 6750