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 Data 1 manufacture two new tables for customers. You will design and build the tables. The company does not have indirect materials. 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. Table Top $2,400 Table legs, quantity 4 ($850 per leg) $3,400 Drawer $440 Assume a $45 per hour wage rate to the assembly employees. 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 120 direct labor hours worked during the month. The xed estimated manufacturing overhead costs per month are: Factory supervisor salary $3,000 Rent for the factory $900 Depreciation of factory equipment $1,800 Property insurance of factory $2,100 Total Estlmated manufacturlng $7,800 overhead 1 What is the predetermined overhead rate (POHR)? 65 Data 2 The rst order you received was to manufacture a table using a table top and four legs. This is your Job #1. Data 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 1 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 le using the proper format. Please use the following accounts: Accounts payable Depreciation expense Salaries and wages expense Accounts receivables Finished goods Salaries and wages payable The following is a list of transactions that need to be recorded for the company for activity in the month of December. Record Step 1 those in the "General Journal" tab of the excel le using the proper format. Please use the following accounts: Accounts payable Depreciation expense Salaries and wages expense Accounts receivables Finished goods Salaries and wages payable Accumulated depreciation Insurance expense Sales revenue Advertising expense Manufacturing overhead Work in process Cost of goods sold Raw materials 1Dec Raw materials purchased on account, $24,000. 5-Dec All Raw materials needed for Job #1 were requested from the material storage for use during the month. All materials are direct. (After you journalize this entry please enter the information into Job #1 Cost Sheet) 10Dec The following employee costs were incurred but not paid during the month: Direct labor for Job #1, consisted of 60 hours at a rate of $45 per hour, totaling $2,700. (After you journalize this entry please enter the information into Job #1 Cost Sheet) Salary for supervisor of the factory $2,700. Administrative Salary $1,700. 12Dec Manufacturing overhead cost was applied based on direct labor hours to Job #1 using the POHR calculated in Question 1. (After you journalize this entry please enter the information into Job #1 Cost Sheet) 15Dec All Raw materials needed for Job #2 were requested from the material storage for use during the month. 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 $900. Step 2 Step 3 1 7-Dec 20-Dec 24Dec 26Dec 28-Dec 31Dec 31-Dec 31-Dec Advertising costs incurred but not paid for the month was $1,600. Depreciation for the month of December was recorded on equipment $1 ,850 ($1,450 for equipment used in the factory and $400 for equipment used in selling and administrative activities). Property insurance incurred but not paid $2,100 ($1 .700 for the factory and $400 for selling and administrative ofces). Job #1 was completed and transferred to Finished Goods during the month. The completed table was sold on account to the customer for $29,000 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.) By the end of the month, 30 hours of direct labor were incurred at a rate of $45 per hour, totaling $1,350 to begin production on job #2. The employees will be paid next month. (After you journalize this entry please enter the information into Job #2 Cost Sheet) Manufacturing overhead cost was applied using the direct labor hours from Job #2 and the POHR calculated in Question 1. (After you journalize this entry please enter the information into Job #2 Cost Sheet) Post the journal entries that you recorded on the \"General Journal\" tab to the "Taccounts (General Ledger)" tab and calculate the balance for each account. This is the company's first month of business. so there will not be any beginning balances. Record the entry in the general journal to close the Manufacturing Overhead account and adjust for overapplied/underapplied overhead. 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. 109). (Hint: This is the company's first month of operations and therefore the beginning balances will be zero.) Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold on the "Schedule of COGM and Step 3 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. 109). (Hint: This is the company's first month of operations and therefore the beginning balances will be zero.) Step 4 Prepare an Income Statement for the month using the Traditional Format on the \"Income Statement" tab. Step 5 Use the following check gures and make any necessary corrections. Check Figure 1: Cost of Goods Manufactured $12,400 Check Figure 2: Net Operating Income $11,600 Step 6 Answer the following additonal questions. Be sure to write all numbers as positive and no answer should be left blank. 2 What is the ending balance for raw materials? 11960 3 What is the ending balance for work in process? 9540 4 What is the ending balance for finished goods? 0 5 What is the ending balance for accounts payable? 28600 From the Schedule of Cost of Goods Manufactured. what are the raw materials used in 6 . 12040 production? 7 What is the actual manufacturing overhead cost incurred during December? 8 What is the total applied manufacturing overhead cost during December? 9 What is the unadjusted cost of goods sold? 12400 Was the manufacturing overhead for month December overapplied/underapplied ? Enter either . 10 . . underapplled underapplled or overapplied. 11 What is the dollar amount of overapplied/underapplied manufacturing overhead? 900 12 What is the adjusted cost of goods sold? 13300 13 What is the gross margin (in dollars) from the income statement? 15700 14 What is the total prime cost from the Job #1 Cost Sheet? 15 What is the total conversion cost from the Job #1 Cost Sheet? 16 What is the total product cost from the Job #1 Cost Sheet? 17 What was the period cost incurred for the month of December? 17 18 19 20 What was the period cost incurred for the month of December? What is the contribution margin (in dollars) for Job #1 (assume that all selling and administrative cost and all manufacturing overhead costs are fixed.) If job#1 was for ve tables instead of one, what would be the total amount of variable cost recorded on Job #1 '5 cost sheet?? If the factory has the capacity to produce five tables each month, what would be the total actual fixed manufacturing overhead cost (in dollars) incurred if five tables were produced instead of one? General Journal Date Description Debit Credit 1-Dec Raw Materials $ 24,000 Accounts Payable $ 24,000 5-Dec Work in Process - Job #1 $ 5,800 Raw Materials $ 5,800 10-Dec Manufacturing Overhead $ 2,700 Work in Process - Job #1 S 2,700 Salaries & Wages Expense 1,700 Salaries & Wages Payable 7,100 12-Dec Work in Process - Job #2 $ 3,900 Manufacturing Overhead 3,900 15-Dec Work in Process - Job #2 $ 6,240 Raw Materials $ 6,240 16-Dec Manufacturing Overhead 900 Accounts Payable $ 900 17-Dec Advertising Expense $ 1,600 Accounts Payable 1,600 20-Dec Manufacturing Overhead 1,450 Depreciation Expense 400 Accumulated Depreciation $ 1,850 24-Dec Manufacturing Overhead 1,700 Insurance Expense 400 Accounts Payable $ 2,100 26-Dec Finished Goods $ 12,400 Work in Process - Job #1 $ 12,400 28-Dec Accounts Receivable $ 29,000 Sales Revenue $ 29,000 28-Dec Cost of Goods Sold $ 12,400 Finished Goods $ 12,400 31-Dec Work in Process - Job #2 1,350 Salaries & Wages Payable 1,350 31-Dec Work in Process - Job #2 1,950 Manufacturing Overhead $ 1,950 31-Dec Cost of Goods Sold 900 Manufacturing Overhead $ 900Job Cost Sheet Job Number Date Initiated Item Date completed Direct Materials Direct Labor Manufacturing Overhead Amount Rate POHR Amount $2,400 60 $65 $3,900 Tell me what you want to do SW - Cost Summary Direct Materials $5,800.00 Direct Labor $2,700.00 Manufacturing Overhead $3,900.00 Total Product Cost $12,400.00 Unit Product Cost $12,400.00 Job Cost Sheet Job Number 2 Date Initiated Item Table with drawers Date completed Direct Matarials Direct Labor Manufacturing Overhead 65 $1,950.00 Cost Summary Direct Materials $6,240.00 Direct Labor $1,350.00 Manufacturing Overhead $1,950.00 Total Product Cost $9,540.00 Unit Product Cost $9,540.00 Accounts Receivable Accounts Payable Sales Revenue 28-Dec $ 29,000 24,000 1-Dec $ 29,000 28-Dec 900 16-Dec End. Bal $ 29,000 1,60 17-Dec $ 29,000 End. Bal 2,100 24-Dec 28,600 End. Bal Raw Materials Salaries and Wages Payable 1-Dec $ 24,000 5,800 5-Dec 7,100 10-Dec un U 6,240 15-Dec 1,350 31-Dec Cost of Goods Sold End. Bal $ 11,960 28-Dec $ 12,400 $ 8,455 End. Bal End. Bal $ 12,400 Work In Process 5-Dec $ 5,800 $ 12,400 26-Dec Salaries and Wages Expense 10-Dec $ 2,700 10-Dec $ 1,700 12-Dec $ 3,900 15-Dec $ 6,240 End. Bal $ 1,700 31-Dec $ 1,350 31-Dec $ 1,950 End. Bal $ 9,540 Finished Good Advertising Expense 26-Dec $ 12,400 $ 12,400 28-Dec 17-Dec $ 1,600 End. Bal End. Bal S 1,600 Depreciation Expense Manufacturing Overhead 20-Dec $ 400 10-Dec $ 2,700 $ 3,900 12-Dec 16-Dec $ 900 1,950 31-Dec End. Bal S 400 20-Dec $ 1,450 24-Dec $ 1,700 End. Bal S 900Work In Process 5-Dec $ 5,800 $ 12,400 26-Dec Salaries and Wages Expense 10-Dec $ 2,700 10-Dec $ 1,700 12-Dec $ 3,900 15-Dec $ 6,240 End. Bal $ 1,700 31-Dec $ 1,350 31-Dec $ 1,950 End. Bal $ 9,540 Finished Goods Advertising Expense 26-Dec $ 12,400 $ 12,400 28-Dec 17-Dec $ 1,600 End. Bal End. Bal $ 1,600 Depreciation Expense Manufacturing Overhead 20-Dec $ 400 10-Dec $ 2,700 3,900 12-Dec 16-Dec $ 900 ur 1,950 31-Dec End. Bal $ 400 20-Dec $ 1,450 24-Dec $ 1,700 End. Bal S 900 Insurance Expense Accumulated Depreciation 24-Dec $ 400 $ 1,850 20-Dec End. Bal 400 1,850 End. BalThunderduck Custom Tables, Inc. Thunderduck Custom Tables, Inc. Thunderduck Custom Tables, Inc. Schedule of cost of goods manufactured Cost of goods sold Income Statement For the month Ended December 31, 20XX For the month Ended December 31, 20XX For the month Ended December 31, 20XX Beginning Raw Materials $0 Beginning Finished Goods $0 Sales $29,000 Raw Materials Purchased $24,000 Cost of Goods Manufacturing $12,400 Cost of Goods Sold $13,300 Raw Materials available for use $24,000 Goods available for sale $12,400 Gross Margin $15,700 Less: End Raw Materials ($11,960) Less: End. Finished Goods $0 Selling and administrative expenses: Raw Materials used $12,040 Unadjusted Cost of Goods Sold $12,400 Salaries and wages expenses $1,700 Indirect Raw Materials $0 Underapplied MOH $900 Advertising Expense Direct Materials $12,040 Adjusted Cost of Goods Sold $13,300 Depreciation Expense Direct Labor $4,050 Applied MOH $5,850 Net Operating Income Total Manufacuting cost $21,940 Beginning Work in Process $0 Less: Ending Work in Process ($9,540) Cost of goods manufactured $12,400