Question

QUESTION 1 Step 1 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 $1,700.00 Table Leg $500.00 Drawer $370.00 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 b. Rent for the factory per month C Depreciation of factory equipment per month Total Estimated manufacturing overhead 53,500.00 $1,300.00 5600,00 $5,400.00 What is the predetermined manufacturing overhead rate? 450 Step 2 Step 3 The first order you received was to manufacture a table using a table top and four legs. This is your job #1. 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, $17.000. 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:

Answer 1

Sales Particulars Accounts Receivable Income Summary Amount($) $15,000 $15,000 Accounts Receivables Particulars Sales Ending Balance Amount($) $15,000 $15,000 Raw Materials: Particulars Amount($) Accounts Payable $1,600 Amount($) Work in $10,000 Process Work in $6,500 Process Work in Process Ending Balance $1,900 $3,500

Work in Process Particulars Amount($) Amount($) Finished $1,600 Goods Raw Materials | $3,520 Salaries and Wages Payable Raw Materials Manufacturing Overhead ($ 300 x 6 DLH) $120 $1,900 $1,800 $60 Salaries and Wages Payable Manufacturing Overhead Ending Balance $900 $2,860 Finished Goods Particulars Amount($) Amount($) Cost of $3,520 Goods Sold Work in Process $3,520

Manufacturing Overheads Particulars Amount($) $1,800 Salaries and Wages Payable Accumulated Depreciation : Equipment Accounts Payable Factory Rent) Amount($) Work in $3,000 Process Work in $150 Process Cost of $500 Goods Sold $3,650 $900 $950 $3,650

Computaton of Cost of Goods Manufactured Amount($) Amount($) $0 $10,000 $6,500 Particulars Raw Materials issued to Production Raw Materials, December 1 Raw Materials Purchased Less: Raw Materials, December 31 Direct Labot Manufacturing Overhead Applied Total Manufacturing Costs Less: Work in Process, December 31 Cost of Goods Manufactured $3,500 $180 $2,700 $6,380 ($2,860) $3,520

Cost of Goods Sold: Particulars Cost of Goods Manufactured Amount($) $3,520 30 Finished Goods, December 1 Cost of Goods Available for Sale Finished Goods, December $3,520 Cost of Goods Sold Unadjusted) Manufacturing Overhead Underapplied Cost of Goods Sold Adjusted) $950 $4,470 Salaries & Wages Particulars Work in Process Manufacturing Overhead Amount($) $120 $3,000 Salaries and Wages Expense Work in Process Ending Balance $2,000 $60 $5,180

. Income Statement(for the month of december | Particulars Sales Cost of Goods Sold Gross Profit Selling and Administrative Expenses Advertising Expense Amount($) Amount($) $15,000 $4,470 $10,530 $1,200 $2,000 $600 Salaries and Wages Expense Depreciation Expense Total Selling and Administrative Expenses Net Operating Income Working note: manufacturing overhead rate = $3,600/12 = $300 per D.L.Hour $3,800 $6,730

Particulars Ending balance for raw materials Ending balance for work in process: Ending balance for finished goods: Actual manufacturing overhead incurred during December: Total applied manufacturing overhead during December: Unadjusted cost of goods sold : Manufacturing overhead was underapplied by Adjusted cost of goods sold: Gross Margin: Total prime cost for Job #1: Conversion cost for Job #1: Product cost for Job # 1 : Period costs for December: Total variable costs for Job #1: Contribution margin for Job #1: Actual fixed manufacturing costs that would have been incurred if five tables were manufactured: Amount($) $6,500 $2,860 $0 $3,650 $2,700 $3,520 $950 $4,470 $10,530 $1,720 $1,920 $3,520 $3,800 $1,720 $13,280 $3,650