You work for Thunderduck Custom Tables Inc. This is the first month of operation

Question

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 Step 1 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 Table Leg Drawer $2,300.00 $800.00 $430.00 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 cerhead 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 $4,000.00 $800.00 $600.00 $5,400.00 Total Estimated manufacturing overhead What is the predetermined manufacturing overhead rate? 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. 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. 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 Recelvables, Step 4 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

Explanation / Answer

Predetermined Manufacturing Overhead Rate 5400/12 450 Per Hour Date Account Debit Credit Dec 1 Raw Material Inventory 23000 Dec 1 Accounts Payable 23000 (Purchase of Raw Material) Dec 5 Work in Process Inventory (2300+800*4) 5500 Dec 5 Dec 5 Raw Material Inventory 5500 (Requisition of direct mat) Dec 10 Work in Process Inventory 6*25 150 Dec 10 Manufacturing Overhead 4500 Dec 10 Salaries-Administrative 2000 Dec 10 Salaries and Wages Payable 6650 Dec 15 Work in Process Inventory (2300+800*4+430) 5930 Dec 15 Raw Material Inventory 5930 Dec 16 Manufacturing Overhead (Rent) 800 Dec 16 Accounts Payable 800 Dec 17 Advertising Expense 1400 Dec 17 Accounts Payable 1400 Dec 20 Manufacturing Overhead (Rent) 150 Dec 20 Depreciation-Selling and adm 600 Dec 20 Accumulated Depreciation 750 Dec 22 Work in Process Inventory 450*6 hour 2700 Dec 22 Manufacturing Overhead 2700 Dec 26 Finished Goods Inventory 8350 Dec 26 Work in Process Inventory 8350 Dec 28 Accounts Receivable 28000 Dec 28 Sale 28000 Dec 28 Cost of goods sold 8350 Dec 28 Finished Goods Inventory 8350 Dec 31 Work in Process Inventory 3*25 75 Dec 31 Salaries and Wages Payable 75 Dec 31 Work in Process Inventory 450*3 hour 1350 Dec 31 Manufacturing Overhead 1350 Dec 31 Cost of Goods Sold 1400 Dec 31 Manufacturing Overhead 1400 Raw Material Debit Credit Dec 1 23000 Dec 5 5500 Dec 15 5930 Ending 11570 Work in Process Debit Credit Dec 5 5500 Dec 26 8350 Dec 10 150 Dec 15 5930 Dec 22 2700 Dec 31 75 Dec 31 1350 Ending 7355 Finished Goods Debit Credit Dec 26 8350 Dec 28 8350 Ending Manufacturing Overhead Debit Credit Dec 10 4500 Dec 22 2700 Dec 16 800 Dec 31 1350 Dec 20 150 Dec 31 1400 Cost of Goods Sold Debit Credit Dec 28 8350 Dec 31 1400 Sale Debit Credit Dec 28 28000 Selling and Admin Debit Credit Dec 10 2000 Dec 17 1400 Dec 20 600 Job Cost Sheet for Job No 1 Direct Material Direct Labor Manufaturing Overhead Hours Rate Amount Hours Rate Amount Date 12/5 5500 Date 12/10 6 25 150 Date 12/22 6 450 2700 Cost Summary Units Shipped Direct Material 5500 Date No Balance Direct Labor 150 Dec 28 1 0 Manufacturing Overhead 2700 Total Product Cost 8350 Unit Product Cost 8350 Job Cost Sheet for Job No 2 Direct Material Direct Labor Manufaturing Overhead Hours Rate Amount Hours Rate Amount Date 12/15 5930 Date 12/31 3 25 75 Date 12/31 3 450 1350 Cost Summary Units Shipped Direct Material 5930 Date No Balance Direct Labor 75 Manufacturing Overhead 1350 Total Product Cost 7355 Unit Product Cost 7355 Cost of Goods Manufactured: Finished goods inventory, beginning 0 Work in process inventory, beginning 0 Direct materials: Direct materials inventory, beginning 0 Direct materials purchases 23000 Cost of direct materials available for use 23000 Direct materials inventory, ending -11570 Cost of direct materials placed in production 11430 Direct labor 225 Factory overhead Applied 4050 Total manufacturing costs 15705 Total work in process during period 15705 Work in process inventory, ending -7355 Cost of goods manufactured 8350 Underapplied/(overapplied overhead) 1400 Cost of finished goods available for sale 9750 Finished goods inventory, ending 0 Cost of goods sold 9750 Incme Statement: Sales Revenue 28000 Less: Cost of Goods Sold: COGS 9750 9750 Gross Margin 18250 Less: Selling and Admin: 4000 Net Income 14250

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