Question

Glass Company makes glass orders based on the customer specifications, so the company uses job costing to track costs.

1. The company uses direct labor hours as the cost driver for manufacturing overhead application.

The company estimated the following manufacturing overhead costs for the year: $594,500

The company estimated the following usage of direct-labor hours for the year: $205,000

2.. Beginning Work-in-process, March 1 (Job 57) $100,000

3.. Beginning Finished Goods, March 1 (Job 55) $120,000

4.. Labor Information for March:

Direct-labor hours:

Job 57 6,800

Job 58 6,000

Job 59 4,000

Labor Costs:

Direct-labor wages $420,000

Indirect-labor wages $25,000

Supervisory salaries $12,000

5.. Material Information for March:

Raw materials, Inventory, March 1 $21,000

Purchase or Raw material $210,000

Direct materials requisitioned:

Job 57 $90,000

Job 58 $75,000

Job 59 $51,000

6.. Other costs incurred in March:

Factory Utilities $6,000

Sales Offices Utilities $3,000

Administrative Offices Utilities $2,000

Factory Equipment repair and maintenance costs $2,200

Depreciation on factory equipment $1,000

Manufacturing supplies purchased and used $4,000

7.. During March the following jobs were completed and sold for the following sales price:

Job 57 $400,000

Job 58 $250,000

Required: You need to use cell references to provide answers and calculations. There are 9 questions.

1. Devellop the predetermined overhead rate.

2.. Complete the job cost sheets provided below for the month of March:

3.. Deterrmine the ending Work-In-Process Inventory at the end of March and provide the number of the job(s) still in Work-In-Process at the end of March and the determine total cost of ending work in process for March.

4.. Deterrmine the ending Finished Goods for March and provide the number of job(s) in Finished Goods at the end of March and determine the total cost of ending finished goods for March.

5.. Deterrmine the Cost of Goods Sold for March and provide the number of the job(s) in Cost of Goods Sold for March and deterrmine the total cost of goods sold for March.

6.. Preparre a statement of cost of goods manufactured for March Below. Use Manufacturing Overhead applied in your statement. You need to preppare in good form.

• Glass Company
• Statement of Cost of Goods Manufactured
• For month ending March 31, 20XX

7.. Preparre an Income Statement for March below. The company does not close the over or underapplied overhead until the end of the year, so no adjustment is needed to Cost of Goods Sold. You need to preparre in good form.

• Glass Company
• Income Statement
• For month ending March 31, 20XX

8.. Deterrmine the underapplied or overapplied manufacturing for March.

9.. Preparre a Pie Chart below showing the three product costs that were added to the jobs in March.

Answer 1

Answer to first 4 parts of the guestion: Requirement-1: $594,500 205,000 $2.90 Estimated manufacturing overheads for the year Estimated direct labor hours for the year Pre-determined overhead rate per direct labor hour [$594,500/ 205,000 hours] Requirement-2: Total direct labor cost Total direct labor hours Direct labor cost per hour $420,000 16,800 [6,800 hours 6,000 hours +4,000 hours] $25 [S420,000 16,800 hours] Job 57 Job 58 Job 59 Beginning balance Current Costs: $100,000 $0 $0 Direct Material Direct Labors Applied overhead Total cost of each job $90,000 $75,000 $51,000 [Ref: Direct materials requisitioned] $100,000 $11,600 $379,720 $242,400 $162,600 $170,000 $150,000 $17,400 [6,800 hours x $25; 6,000 hours x $25; 4,000 hours x $25] [6,800 hours x $2.90; 6,000 hours x $2.90; 4,000 hours x $2.90] $19,720

Requirement-3 It is given that Job 57 and Job 58 were completed and sold during March. So, cost of Job 59 will be the ending WIP. $162,600 Ending Work-In-Process Inventory at the end of March [Ref: Requirement-2 for cost of Job 59] It is given that Job 57 and Job 58 were completed and sold during March. So, cost of Job 55 will be the ending finished goods $120,000 [nni inihexi xxi (lkoh»:ii)) Ending Finished Goods at the end of March month