Question

Below are the instructions, I have attatched the screenshots of what needs to be filled out

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	$2,900.00
		Table Leg	$1,100.00
		Drawer	$490.00
	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	$4,500.00
	b.	Rent for the factory per month	$1,500.00
	c.	Depreciation of factory equipment per month	$600.00
		Total Estimated manufacturing overhead	$6,600.00
	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, $29,000.
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, $35 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 $5,000.
	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 $1,500.
17-Dec	Advertising costs incurred but not paid for the month was $1,400.
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 $34,000 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, $35 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. 87). (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.

Job Cost sheet Date Initiated Date completed Direct Matarials anufacburing Overhead Total Product

Answer 1

Job Cost Sheet
Job Number: 1				Date Initiated: Dec. 5
Item: Table				Date completed: Dec. 26
Direct Materials	Direct Labor			Manufacturing Overhead
Amount	Hours	Rate	Amount	Hours	Rate	Amount
2900	6	35	210	6	550	3300
4400
Cost Summary
Direct Materials	7300
Direct Labor	210
Manufacturing Overhead	3300
Total Product Cost	10810
Unit Product Cost	10810

Job Cost Sheet
Job Number: 2				Date Initiated: Dec. 15
Item: Table with drawers				Date completed:
Direct Materials	Direct Labor			Manufacturing Overhead
Amount	Hours	Rate	Amount	Hours	Rate	Amount
2900	3	35	105	3	550	1650
4400
490
Cost Summary
Direct Materials	7790
Direct Labor	105
Manufacturing Overhead	1650
Total Product Cost	9545
Unit Product Cost	9545

General Journal
Date	Description	Debit	Credit
01-Dec	Raw Materials	29000
	Accounts Payable		29000
	Raw materials purchased on account
05-Dec	Work in process - Job # 1	7300
	Raw Materials		7300
	Raw materials requisitioned for Job # 1
10-Dec	Work in process - Job # 1	210
	Salaries and Wages payable		210
	(3 x 2 hours x $35)
10-Dec	Manufacturing overhead	5000
	Salaries and Wages payable		5000
	Factory Supervisor salary
10-Dec	Salaries and Wages expense	2000
	Salaries and Wages payable		2000
	Administrative salary
15-Dec	Work in process - Job # 2	7790
	Raw Materials		7790
	Raw materials requisitioned for Job # 2
16-Dec	Manufacturing overhead	1500
	Accounts Payable		1500
	Rent for factory building payable
17-Dec	Advertising expense	1400
	Accounts Payable		1400
	Advertising expense payable
20-Dec	Manufacturing overhead (factory equip.)	150
	Depreciation expense (S&A equip.)	600
	Accumulated Depreciation		750
22-Dec	Work in process - Job # 1 (3 x 2 hour x $550)	3300
	Manufacturing overhead		3300
	Manufacturing OH applied to Job # 1
26-Dec	Finished goods	10810
	Work in process - Job # 1		10810
	Job # 1 completed and transferred to FG
28-Dec	Accounts Receivable	34000
	Sales Revenue		34000
	Cost of goods sold	10810
	Finished goods		10810
	Sale of Job # 1
31-Dec	Work in process - Job # 2	105
	Salaries and Wages payable		105
	(3 x 1 hour x $35)
31-Dec	Work in process - Job # 2 (3 x 1 hour x $550)	1650
	Manufacturing overhead		1650
	Manufacturing OH applied to Job # 2
31-Dec	Cost of goods sold	1700
	Manufacturing overhead		1700
	Underapplied overheads