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 costs 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 Step 1 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 an Income Statement for the month using the Traditional Format on the Income Statement tab Step 2 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 What is the ending balance for work in process What is the ending balance for finished goods What is the actual manufacturing overhead cost incurred during December before adjustment What is the total applied manufacturing overhead cost during December before adjustment What is the unadjusted cost of goods sold Was the manufacturing overhead for the month of December overapplied underapplied What is the amount of Manufacturing overhead overapplied underapplied What is the adjusted cost of goods sold What is gross margin What is the total prime cost for Job 1 What is the total conversion cost for job 1 What is the total product cost for job 1 What was the period cost incurred for the month of December What is the total variable cost incurred for Job 1(assume that all selling and administrative costs and all manufacturing overhead costs are fixed ) What is the contribution margin for Job 1 (assume that all selling and administrative costs and all manufacturing overhead costs are fixed ) 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 within the relevant range Debit Credit General Journal Date Description 1 Dec raw material accounts payable $ 11,000 $ 11,000 5 Dec work in process $ 1,300 raw material $ 1,300 $ 150 $ 150 10 Dec cost of goods sold accounts payable salaries and wages expenses salaries and wages payable $ 5,500 $ 5,500 $ 1,610 15 Ded work in process raw materials $ 1,610 $ 600 16 Deq maufacturing overhead accounts payable $ 600 $ 1,400 17 Dec advertising expenses accounts payable $ 1,400 $ 750 20 Deq depreciation expense accumulated depreciation $ 750 $ 700 22 Ded work in process manufacturing overhead $ 700 $ 2,150 26 Dec finished goods works in process $ 2,150 $ 16,000 28 Ded sales revenue finished goods profit on sale $ $ 2,150 13,850 $ 225 31 De cost of goods sold accounts payable $ 225 $ 1,050 work in process manufacturing overhead $ 1,050 $ 1,100 cost of goods sold manufacturing overhead $ 1,100 Thunderduck Custom Tables, Inc Schedule of cost of goods manufactured For the month Ended December 31, 20XX Thunderduck Custom Tables, Inc Cost of goods sold For the month Ended December 31, 20XX Thunderduck Custom Tables, Inc Income Statement For the month Ended December 31, 20XX Job 1 Cost Sheet Job 2 Cost Sheet General Journal T accounts (General Ledger) Schedule of COGM, COGS Income

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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

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 costs 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

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Step 1	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 an Income Statement for the month using the Traditional Format on the "Income Statement" tab.
	Step 2
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?
	What is the ending balance for work in process?
	What is the ending balance for finished goods?
	What is the actual manufacturing overhead cost incurred during December before adjustment?
	What is the total applied manufacturing overhead cost during December before adjustment?
	What is the unadjusted cost of goods sold?
	Was the manufacturing overhead for the month of December overapplied/underapplied ?
	What is the amount of Manufacturing overhead overapplied/underapplied?
	What is the adjusted cost of goods sold?
	What is gross margin?
	What is the total prime cost for Job#1?
	What is the total conversion cost for job #1?
	What is the total product cost for job#1?
	What was the period cost incurred for the month of December?
	What is the total variable cost incurred for Job #1(assume that all selling and administrative costs and all manufacturing overhead costs are fixed.)?
	What is the contribution margin for Job #1 (assume that all selling and administrative costs and all manufacturing overhead costs are fixed.)?
	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 within the relevant range?

Debit Credit General Journal Date Description 1-Dec raw material accounts payable $ 11,000 $ 11,000 5-Dec work in process $ 1,300 raw material $ 1,300 $ 150 $ 150 10-Dec cost of goods sold- accounts payable salaries and wages expenses salaries and wages payable $ 5,500 $ 5,500 $ 1,610 15-Ded work in process raw materials $ 1,610 $ 600 16-Deq maufacturing overhead accounts payable $ 600 $ 1,400 17-Dec advertising expenses accounts payable $ 1,400 $ 750 20-Deq depreciation expense accumulated depreciation $ 750 $ 700 22-Ded work in process manufacturing overhead $ 700 $ 2,150 26-Dec finished goods works in process $ 2,150 $ 16,000 28-Ded sales revenue finished goods profit on sale $ $ 2,150 13,850 $ 225 31-De cost of goods sold accounts payable $ 225 $ 1,050 work in process manufacturing overhead $ 1,050 $ 1,100 cost of goods sold manufacturing overhead $ 1,100 Thunderduck Custom Tables, Inc. Schedule of cost of goods manufactured For the month Ended December 31, 20XX Thunderduck Custom Tables, Inc. Cost of goods sold For the month Ended December 31, 20XX Thunderduck Custom Tables, Inc. Income Statement For the month Ended December 31, 20XX Job #1 Cost Sheet Job #2 Cost Sheet General Journal T-accounts (General Ledger) Schedule of COGM, COGS & Income