Templar Company, a manufacturing firm, has supplied the following information from its accounting records for the month of November:
Factory supplies used |
$10,000 |
Depreciation on factory building |
7,000 |
Salary of company controller |
20,000 |
Factory janitorial costs |
5,000 |
Marketing and promotion |
4,500 |
Direct labor cost |
12,000 |
Purchases of raw materials |
15,000 |
Finished Goods Inventory, Nov. 1 |
2,250 |
Finished Goods Inventory, Nov. 30 |
3,750 |
Work in Process Inventory, Nov. 1 |
4,200 |
Work in Process Inventory, Nov. 30 |
2,750 |
Materials Inventory, Nov. 1 |
3,500 |
Materials Inventory, Nov. 30 |
5,100 |
Required:
a. Prepare a Statement of Cost of Goods Manufactured. List each overhead cost separately on a separate line.
b. Prepare a Statement of Cost of Goods Sold.
2. Pribil Farm Equipment is a job-order costing manufacturer that uses a plantwide overhead rate based on direct labor hours. Estimations for the year include $250,000 in Overhead and 50,000 direct labor hours. Pribil worked on five jobs in March. Data are as follows:
Job 89 |
Job 90 |
Job 91 |
Job 92 |
Job 93 |
|
Balance, 3/1 |
$23,110 |
$18,240 |
$ 9,510 |
$0 |
$0 |
Direct Materials |
13,000 |
17,210 |
22,900 |
15,240 |
8,210 |
Direct Labor cost |
8,075 |
11,500 |
16,250 |
9,750 |
4,860 |
Direct Labor Hours |
1,615 |
2,300 |
3,250 |
1,950 |
972 |
By March 31, Jobs 89 and 91 were completed and sold at Cost plus 55%. The rest of the jobs remained in process.
Calculate the plantwide overhead rate.
Create Job Cost Reports for the month.
Calculate the Work-in-Process on March 31 and COGS.
Income Statement for the Month of March
a.
Templar Company | ||
Statement of Cost of Goods Manufactured | ||
For the Month Ended November 30 | ||
Beginning raw materials $ | 3500 | |
Add: Raw material purchases | 15000 | |
Raw materials available for use | 18500 | |
Less: Ending raw materials | 5100 | |
Raw materials used | 13400 | |
Direct labor | 12000 | |
Manufacturing overheads | ||
Factory supplies | 10000 | |
Depreciation on factory building | 7000 | |
Factory janitorial costs | 5000 | 22000 |
Total current manufacturing costs | 47400 | |
Add: Beginning work in process | 4200 | |
Total cost of work in process | 51600 | |
Less: Ending work in process | 2750 | |
Cost of goods manufactured $ | 48850 |
b.
Templar Company | |
Statement of Cost of Goods Sold | |
For the Month Ended November 30 | |
Beginning finished goods | 2250 |
Add: Cost of goods manufactured | 48850 |
Cost of goods available for sale | 51100 |
Less: Ending finished goods | 3750 |
Cost of goods sold $ | 47350 |
Per HOMEWORKLIB RULES the first question has been answered. Please post the remaining question separately. Thank you.
Templar Company, a manufacturing firm, has supplied the following information from its accounting records for the...
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