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 $1,500 00 Table Leg $400 00 Drawer $350 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 $2,500 00 b Rent for the factory per month $1,100 00 c Depreciation of factory equipment per month $600 00 Total Estimated manufacturing overhead $4,200 00 What is the predetermined manufacturing overhead rate 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, $15,000 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 $3,000 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 $1,100 17 Dec Advertising costs incurred but not paid for the month was $1,600 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 $20,000 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 109) (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 $5,350, Net operating income $9,350 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 cost and all manufacturing overhead costs are fixed ) What is the contribution margin for Job 1 (assume that all selling and administrative cost 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 with in the relevant range AutoSave H9 ACCT 2302 Job Older Costing project Excel template Scaren Patrick Tran PI DE Filc Home Inscurt Page Layout Formulas Data Review Vic Help Acrobat Share Comments Caliti General X Cut copy 3 Format Painter A A MA WILL FH X Insell Delele Fonnal a wrap Text Merge Center Y Autosum Fill Clear Posle Arelyze Data BIU Conditional Formal da Cell Formatting Table Svins Sort Find Filtar Salact Clipboard ort Alignment E Number Sales Call Lditirs Analysis 69 Ir A C D E F G H 1 1 K 1 N N P Q R B 1 B General Journal Description Date Debit Credit 2 3 5 6 a 9 11 12 11 14 16 17 18 19 20 21 22 21 24 25 26 27 28 General Journal lob 1 Cost Shech Inhez Cost Short Tacourts General ledger) Schedule of COGM, COGS Incrime Fasc, 100 8CF Sunny 804 PM 7 12 2121 AutoSave H9 ACCT 2302 Job Older Costing project Excel template Scaren Patrick Tran PI DE Filc Home Inscurt Page Layout Formulas Data Review Vic Acrobat Share Comments Autosum Calibri a wrap Text General X Cut copy Format Painter Y 1 AA UA WILL TH C Insell Delele Formal Posle BIU Z Sort Find Filtar Salact Conditional Formal Cell Formatting Table Styles Merge Center Clear Analyze Data Analysis Clipboard ort Alignment E Number E Sisley CSI Litirs V20 F N 7 1 Direct Materials Jab Car Shast Jamber HATI BiH i nate namient G 7 Di Mwards Orcct Labo Mandaturing new Male III iii Aunu nl 2 1 iiL 2 1 TI Munud Tota Productos Lui noul Dual 91 24 25 25 2 12 11 11 11 11 37 General lournal Job 1 Cost Shoot Jnh 2 Cost Short Taccounts General Treger) Schedule of COGM, COGS B Income Fascy 7 74 x 8CF Sunny 805 PM 9,1221221 AutoSave H9 ACCT 2302 Job Older Costing project Excel template Scaren Patrick Tran PI DE Filc Home Insert Pace Layout Formulas Data Review Vic Help Acrobat Share Comments Calibri WILL General EH a wrap Text Y X Cut IL Copy 3 Format Painter 1 A A A Autosum Fill Clear Posle BIU Merge Center $ ) 28 Insell Delele Formal Conditional Formal da Cell Formatting Table Sylns Z Sort Find Filtar Salact Analyze Data Anysis Clipboard ort Blignment E Number Sic Call Lditirs H38 13 4 1 1 2 Direct Materials Job Cost here Job Number Die Initiated TI 6 7 Manufacture Direc Mar Pull Tu Tals Pull Hus 1 9 3 Dres Made 4 Wannels Tata Predu 2 Jnit Product Co ull 2 11 32 13 31 35 19 General lournal lob 1 Cast Sheet Job 2 Cost Sheet Tacrourts General Irriger Schedule of COGM COGS Income Rasd 574 x 8CF Sunny 805 PM 9,1221221 AutoSave) Hon ACC 2302 Jub Oide Costing project Excel template O Scarch Patrick Tran PI Filc Home Inscurt Pace Layout Formulas Data Rovi Vic Help Acrobat Share Comments Dale SIX WILL FH X Cut Copy 3 Format Painter Y Calibri AA a wrap Text BIU LA Merge Center Autosum Fill Clear Posle $ 42 99 Insell Delele Formal Conditional Formal da Call Formatting Table Sylns Z Sort Find Filtar Salact Analyze Data Anysis Clipboard ort Alignment F Number Site Call Lditirs K3 X As H w 53 u 1 Aritke Aruru Saimet lew New Corsed Wars Cent slow 1 15 Which ) Haied Ed a E44 4 22 hushad Bust Depresurse Nended Ararapeter 4) General lournal lob 1 Cast Sheet Jnh 7 Cost Short T accounts (General Ledgar) Schedule of COGM, COGS Incrime Resc, 507 0 8CF Sunny 805 PM 9,1221221 AutoSave H9 ACCT 2302 Job Older Costing project Excel template Scaren Patrick Tran PI DE Filc Home Inscurt Page Layout Formulas Data Review Vic Help Acrobat Share Comments Autosum Caliti General 1AA a wrap Text MA Merge Center X Cut IL Copy Format Painter Clipboard 47 WILL MIX FH Inseri Delele Format Posle Analyze Data BIU B Conditiorel Formal da Cell Formatting Table Styles Sonic $ 58 Sort Find Filtar Salact Clear ort Alignment Number CSI Lditire nysis M28 3 c D G H I N C P 1 2 3 4 Thunderduck Custom Tables, Inc Schedule of cost of goods manufactured For the month Endled December 31, 20XX Thunderduck Custom Tables, Inc Cost of goods sold For the month Ended Decernter 31, 20XX Thunderduck Custom Tables, Inc Income Statement For the month Ended December 31, 20XX 5 6 8 9 10 11 12 13 14 15 15 18 21 22 23 21 25 25 27 29 29 General lournal lob 1 Cost Sheet Jnh 7 Cost Shert T accounts General Ledger) Schedule of COGM, COGS Income Rasd 11004 0 x 30F Sunny 805 PM 9,1221221

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 30, 2024

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 cost are on a per unit basis.
		Table Top	$1,500.00
		Table Leg	$400.00
		Drawer	$350.00
	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	$2,500.00
	b.	Rent for the factory per month	$1,100.00
	c.	Depreciation of factory equipment per month	$600.00
		Total Estimated manufacturing overhead	$4,200.00

What is the predetermined manufacturing overhead rate?

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, $15,000.
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 $3,000.
	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 $1,100.
17-Dec	Advertising costs incurred but not paid for the month was $1,600.
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 $20,000 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. 109). (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= $5,350, Net operating income=$9,350

	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 cost and all manufacturing overhead costs are fixed.)?
	What is the contribution margin for Job #1 (assume that all selling and administrative cost 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 with in the relevant range?

image text in transcribed

AutoSave H9 ACCT 2302 Job Older Costing project Excel template Scaren Patrick Tran PI DE - Filc Home Inscurt Page Layout Formulas Data: Review Vic Help Acrobat Share Comments Caliti General X Cut [copy 3 Format Painter A A MA WILL FH X Insell Delele Fonnal === a wrap Text === Merge & Center Y Autosum Fill Clear Posle @ Arelyze Data BIU-- Conditional Formal da Cell Formatting Table Svins Sort & Find & Filtar Salact Clipboard -ort Alignment E Number Sales Call: Lditirs Analysis 69 Ir A C D E F G H 1 1 K 1 N N P Q R B 1 B General Journal Description Date Debit Credit 2 3 5 6 a 9 11. 12 11 14 16 17 18 19 20 21 22 21 24 25 26 27 28 General Journal lob#1 Cost Shech Inhez Cost Short Tacourts General ledger) Schedule of COGM, COGS & Incrime + Fasc, ! 100% 8CF Sunny 804 PM 7/12/2121 AutoSave H9 ACCT 2302 Job Older Costing project Excel template Scaren Patrick Tran PI DE - Filc Home Inscurt Page Layout Formulas Data: Review Vic Acrobat Share Comments Autosum Calibri a wrap Text General X Cut [copy Format Painter Y 1 AA === UA === WILL TH C | Insell Delele Formal Posle BIU Z Sort & Find & Filtar Salact Conditional Formal | Cell Formatting Table Styles Merge & Center Clear Analyze Data Analysis Clipboard -ort Alignment E Number E Sisley CSI: Litirs V20 F N - 7 1 Direct Materials: . Jab Car Shast Jamber HATI BiH i nate namient G 7 Di Mwards Orcct Labo Mandaturing new Male III iii Aunu.nl 2.1 iiL. 2 !!!! - 1 . TI Munud Tota Productos Lui noul Dual 91 24 25 25 2: . 12 11 11 11 11 37 General lournal Job #1 Cost Shoot Jnh 2 Cost Short Taccounts General Treger) Schedule of COGM, COGS B Income + Fascy 7.74 x 8CF Sunny 805 PM 9,1221221 AutoSave H9 ACCT 2302 Job Older Costing project Excel template Scaren Patrick Tran PI DE - Filc Home Insert Pace Layout Formulas Data: Review Vic Help Acrobat Share Comments Calibri === WILL General EH a wrap Text Y X Cut IL Copy 3 Format Painter 1 A A A Autosum Fill Clear Posle BIU ====Merge & Center $ %) 28 Insell Delele Formal Conditional Formal da Cell Formatting Table Sylns Z Sort & Find & Filtar Salact Analyze Data Anysis Clipboard -ort Blignment E Number Sic Call: Lditirs H38 13 4 1 1 2 Direct Materials: Job Cost here Job Number Die Initiated . TI 6 :- 7 Manufacture Direc: Mar Pull Tu. Tals Pull Hus 1: .. 9 . 3 Dres Made 4 Wannels Tata Predu 2 Jnit Product Co. ull 2: 11 32 13 31 35 19 General lournal lob #1 Cast Sheet Job #2 Cost Sheet Tacrourts General Irriger Schedule of COGM COGS & Income + Rasd 574 x 8CF Sunny 805 PM 9,1221221 AutoSave) Hon ACC 2302 Jub Oide: Costing project Excel template- O Scarch Patrick Tran PI Filc Home Inscurt Pace: Layout Formulas Data: Rovi Vic Help Acrobat Share Comments Dale SIX WILL FH X Cut Copy 3 Format Painter Y Calibri AA === a wrap Text BIU.LA ===Merge & Center - Autosum Fill Clear Posle $% 42.99 Insell Delele Formal Conditional Formal da Call Formatting Table Sylns Z Sort & Find & Filtar Salact Analyze Data Anysis Clipboard -ort Alignment F Number Site Call: Lditirs K3 X As H w 53 u -1 : Aritke Aruru Saimet . lew New - Corsed Wars Cent slow 1. 15 Which :) Haied Ed ; a E44*4 22 hushad Bust Depresurse Nended Ararapeter 4) General lournal lob #1 Cast Sheet Jnh 7 Cost Short T-accounts (General Ledgar) Schedule of COGM, COGS & Incrime + Resc, 507 0 8CF Sunny 805 PM 9,1221221 AutoSave H9 ACCT 2302 Job Older Costing project Excel template Scaren Patrick Tran PI DE - Filc Home Inscurt Page Layout Formulas Data: Review Vic Help Acrobat Share Comments Autosum Caliti General 1AA === a wrap Text MA ===Merge & Center X Cut IL Copy Format Painter Clipboard 47 WILL MIX FH Inseri Delele Format Posle @ Analyze Data BIU B Conditiorel Formal da Cell Formatting Table Styles Sonic: $% % 58 Sort & Find & Filtar Salact Clear -ort Alignment Number CSI: Lditire nysis M28 3 c D G H I N C P 1 2 3 4 Thunderduck Custom Tables, Inc. Schedule of cost of goods manufactured For the month Endled December 31, 20XX Thunderduck Custom Tables, Inc. Cost of goods sold For the month Ended Decernter 31, 20XX Thunderduck Custom Tables, Inc. Income Statement For the month Ended December 31, 20XX 5 6 8 9 10 11 12 13 14 15 15 18 21 22 23 21 25 25 27 29 29 General lournal lob #1 Cost Sheet Jnh 7 Cost Shert T accounts General Ledger) Schedule of COGM, COGS & Income + Rasd 11004 0 x 30F Sunny 805 PM 9,1221221