Question

this my question and i only need help with step 4,5,6,7,8 and thats it.

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 $1,000.00 Table Leg $ 150.00 Drawer 5 300.00 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 Depreciation of factory equipment per month Total Estimated manufacturing overhead $ 2.500.00 5500.00 5600.00 $ 3.000.00 What is the predetermined manufacturing overhead rate? Step 2 Steo 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 tob #2 wants a table that is the same as lob #1 but wants to also add a drawer to the table.

Answer 1

Step 4 Journal entries
Sr. No.	Particulars			Debit		Credit
1-Dec	Raw Materials		Dr.	$10,000
	Accounts payable					$10,000
	(Being Raw materials purchased on account)
5-Dec	Work in Process		Dr.	$     1,600
	Raw Materials					$1,600
	(Being Raw materials issued for use in Job #1)
10-Dec	Work in Process       (2 hours* 3 employees*$20 per hour)		Dr.	$120
	Manufacturing Overhead		Dr.	$3,000
	Salaries and Wages Expense		Dr.	$2,000
	Salaries and wages payable					5,120
	(Being employee cost incurred)
15-Dec	Work in Process		Dr.	$1,900
	Raw Materials					$1,900
	(Being Raw materials issued for use in Job #2)
16-Dec	Manufacturing Overheads		Dr.	$500
	Rent Payable					$500
	(Being Rent for the facry building incurred )
17-Dec	Advertising Expenses		Dr.	$1,200
	Advertising Expenses Payable					$1,200
	(Being Advertising Expenses incurred)
20-Dec	Manufacturing Overhead		Dr.	$150
	Depreciation expense		Dr.	$600
	Accumulated depreciation					$750
	(Being depreciation charged on facry and office equipments)
22-Dec	Work in Process		Dr.	1,800
	Manufacturing Overheads					$1,800
	(Being Manufacturing Overheads charged job #1 @ $300 per direct labour) (300 * 6)
26-Dec	Finished Goods		Dr.	3,520
	Work in Process					$3,520
	(Being job #1 completed)
28-Dec	Cost of goods sold		Dr.	$3,520
	Finished Goods					$3,520
	(Being goods sold transferred)
28-Dec	Accounts Receivable		Dr.	$15,000
	Sales Revenue					$15,000
	(Being goods sold on account)
31-Dec	Work in Process      (1 hour* 3 employees*$20 per hour)		Dr.	$60
	Salaries and wages payable					$60
	(Being direct labor cost incurred)
31-Dec	Work in Process                                                                      Dr.			$900
	Manufacturing Overheads					$900
	(Being Manufacturing Overheads charged job #2 @ $300 per direct labour) (300 * 3)
31-Dec	Cost of goods sold                                                                    Dr.			$        950
	Manufacturing Overheads					$950
	(Being underapplied overheads charged)

Step 5 T- Accounts Raw materials $ To Balance b/d To Accounts payable By Work in Process By Balance c/d 3,500 6,500 $ 10,000 $ $ 10,000 10,000 Work In Process To Balance b/d IS - By Finished Goods 3,520 By Balance c/d 2,860 To Raw Materials To Salaries and wages payable To Manufacturing Overheads $ $ $ 3,500 180 2,700 $ 6,380 6,380 Finished Goods To Balance b/d $ - 3,520 By Cost of goods sold By Balance c/d To Work in Process $ 3,520 $ 3,520 3,520 Manufacturing Overheads To Salaries and wages payable To Rent Payable To Accumulated depreciation $ $ $ 3,000 500 150 By Work in Process By Cost of Goods Sold By Balance c/d 2,700 950 $ $ 3,650 3,650 By Balance c/d Cost of Goods Sold 3,520 950 To Finished Goods To Manufacturing Overheads 4,470 $ $ $ 4,470 4,470

To Sales Revenue Accounts Receivables $ 15,000 By Balance c/d $ 15,000 15,000 15,000 Sales Revenue 15,000 To Balance c/d $ By Accounts Receivables 15,000 $ 15,000 15,000 To Balance c/d Accumulated depreciation $ 750 By Manufacturing Overheads By Selling & Administration Overheads 150 600 $ 750 750 Rent Payable To Balance c/d By Manufacturing Overheads 500 500 500 $ 500

To Balance c/d Advertising Expenses Payable $ 1,200 Advertising Expenses $ 1,200 $ $ 1,200 1,200 To Balance c/d Accounts Payable 10,000 10,000 $ $ By Raw Materials 10,000 10,000 To Balance c/d Salaries and wages payable $ 5,180 By Work in Process By Manufacturing Overheads By Salaries and Wages Expense $ 5,180 180 3,000 2,000 5,180 To Salaries and wages payable Salaries and wages Expenses $ 2,000 By Balance c/d $ 2,000 2,000 2,000 To Advertising Expenses Payable Advertising Expenses $ 1,200 By Balance c/d $ 1,200 $ $ 1,200 1,200 Depreciation Expense To Accumulated depreciation By Balance c/d $ $ 600 600 600 600 Credit Trial Balance Debit 15,000 6,500 2,860 Accounts Receivables Raw materials Work in process Finished goods Accumulated depreciation Accounts payable Rent payable Advertising Expenses Payable Salaries and wages payable Sales revenue, Manufacturing overhead Cost of goods sold Salaries and wages expense Advertising expenses Depreciation expense Total 750 10.000 500 1,200 5,180 15,000 $ $ 4,470 2.000 1.200 600 32,630 $ 32,630

Manufacturing Overheads are underapplied for the month.
	Actual manufacturing overheads incurred	$        3,650
	Applied manufacturing overheads (1800+900)	$        2,700
	Underapplied overheads	$           950
Step 6 Schedule of Cost of Goods Manufactured :-
Thunderduck Custom Tables Inc.
Schedule of Cost of Goods Manufactured
For the Month Ended December 31, 20XX
	Particulars
	Raw material used		$ 3,500
	Direct Labor		$     180
Add:	Manufacturing Overheads		$ 2,700
	Total manufacuring costs		$ 6,380
Add:	Beginning inventory of Work in Process		$        -
	Total Cost of Work in process		$ 6,380
Less:	Ending inventory of Work in Process		$ 2,860
	Cost of Goods manufactured		$ 3,520
Thunderduck Custom Tables Inc.
Schedule of Cost of Goods Sold
For the Month Ended December 31, 20XX
	Beginning inventory of Finished Goods		$        -
Add:	Cost of Goods manufactured		$   3,520
	Cost of Goods available for sale		$   3,520
Less:	Ending inventory of Finished Goods		$        -
	Unadjusted Cost of Goods sold		$ 3,520
Add:	Underapllied overheads charged		$      950
	Adjusted Cost of Goods sold		$ 4,470
Step 7 Income Statement for the month
Thunderduck Custom Tables Inc.
Income Statement
For the Month Ended December 31, 20XX
	Sales		$   15,000
Less:	Cost of Goods sold		$     4,470
	Gross margin		$ 10,530
Less:	Salaries and wages Expense		$     2,000
Less:	Advertising Expense		$     1,200
Less:	Depreciation Expense		$        600
	Net operating income		$     6,730

Step 8 Additional Questions
1	What is the ending balance for raw materials? (See Raw materials T-account above)				$              6,500
2	What is the ending balance for work in process? (See Work in process T-account above)				$              2,860
3	What is the ending balance for finished goods? (See Finished Goods T-account above)				$                   -
4	What is the actual manufacturing overhead cost incurred during December before adjustment? (See Manufacturing overheads T-account total above)				$              3,650
5	What is the total applied manufacturing overhead cost during December before adjustment?				$              2,700
6	What is the unadjusted cost of goods sold? (See Schedule of Cost of Goods sold)				$              3,520
7	Was the manufacturing overhead for the month of December overapplied/underapplied ?				Underapplied
8	What is the amount of Manufacturing overhead overapplied/underapplied? (See above working)				$                 950
9	What is the adjusted cost of goods sold? (See Schedule of Cost of Goods sold)				$              4,470
10	What is gross margin? ((10530/15000)*100)				70.20%
11	What is the total prime cost for Job#1? (Direct materials Cost+ Direct labor cost)				$              1,720
12	What is the total conversion cost for job #1? (Direct labor cost+ Manufacturing overhead cost)				$              1,920
13	What is the total product cost for job#1? (See cost summary in Job cost sheet)				$              3,520
14	What was the period cost incurred for the month of December?   (Salaries of supervisor +Rent)				$              3,500
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.)? (Direct materials Cost+ Direct labor cost)				$              1,720
16	What is the contribution margin for Job #1 (assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)? (Sales- variable cost as per 15 q.)				$            13,280
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? (Fixed manufacturing cost will remain the same irrespective of no. of units produced) (See Manufacturing overheads T-account total above)				$              3,650

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Thank you.