Use listed steps to answers the questions at the bottom. Need this by 10 pm toni
ID: 2412109 • Letter: U
Question
Use listed steps to answers the questions at the bottom. Need this by 10 pm tonight CST.
You work for Thunderduck Custom Tables Inc. This is the first month of operations. The company designs and manufactures speciaty 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. Step 1 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 $2,600.00 $950.00 $460.00 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 c. Depreciation of factory equipment per month $3,000.00 $1,200.00 $600.00 $4,800.00 Total Estimated manufacturing overhead 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 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 3 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 Step 4 1-DecRaw Materials purchased on account, $26,000 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)Explanation / Answer
Ending balance of raw materials 8090 Ending balancE or work in process 5270 Ending balance of finished goods 0 Actual manufacturing overhead cost incurred 4850 Applied overhead manufacturing costs 3600 Unadjusted cost of goods sold 6070 Underapplied manufacturing overhead cost 1250 The adjusted cost of goods sold 7320 Gross margin 23680 Total prime cost for job #1 3670 The conversion cost for Job#1 2520 Total Product cost for Job#1 6070 Period cost for the month 8850 Total variable cost incurred for Job#1 3670 Contribution margin for Job#1 27330 Actual cost for 5 tables 23200 Direct material - 5 x 3,550 - 17,750 Direct labor - 5 x 6 x 20 - 600 Overhead - 4,850 THUNDERDUCK CUSTOM TABLE INC. Journal Entries for the month of Dec. Date Account Debit Credit Dec.1 Raw material 26000 Accounts payable 26000 (Purchase of raw material on account) Dec.5 Work in process 3550 Raw material 3550 (Raw material for Job #1 issued - 1 table top and four legs) Dec.10 Work in process 120 Salaries & Wages Payable 120 (Direct labour for Job#1 accounted - 3 employees , 2 hours each @$25 per hour) Manufacturing Overhead 3500 Salaries & Wages 2000 Salaries & Wages Payable 5500 (Factory Supervisor & Administration salary accounted) Dec.15 Work in process 4010 Raw material 4010 (Raw material for Job #2 issued - 1 table top , drawer and four legs) Dec.16 Manufacturing Overhead 1200 Accounts payable 1200 (Rent for the month accounted) Dec.17 Advertising expense 1400 Accounts payable 1400 (Adevertising expense accounted) Dec.20 Depreciation 750 Accumulated Depreciation 750 (Depreciation for the month accounted) Manufacturing Overhead 150 Depreciation 150 (Depreciation on factory equipment) Dec.22 Work in process 2400 Manufacturing Overhead 2400 (Manufacturing overhead for Job#1 - 6 hours @$400 per hour accounted) Dec.26 Finished Goods 6070 Work in process 6070 (Job#1 completed transferred to Finished Goods) Dec.26 Cost of goods sold 6070 Finished Goods 6070 (Cost of Job#1 Sold) Dec.28 Accounts Receivable 31000 Sales 31000 (Sale of table under Job#1 accounted) Dec.31 Work in process 60 Salaries & Wages Payable 60 (Direct labour for Job#2 3 employees 1 hour each @$20 per hour accounted) Dec.31 Work in process 1200 Manufacturing Overhead 1200 (Manufacturing overhead for Job#2 3 hours @$400 per hour accounted) Dec.31 Cost of goods sold 1250 Manufacturing Overhead 1250 (Under applied overhead transferred to COGS) COST SHEET JOB #1 Raw material 3550 Finished goods 6070 Wages 120 Manufacturing Overhead 2400 6070 6070 JOB COST SHEET #2 Raw material 4010 Direct labor 60 Manufacturing Overhead 1200 Predetermined overhead rate: Estimated direct labour hours 12 Estimated factory overhead costs: Factory supervisor salary 3000 Rent for factory 1200 Depreciation for equipment 600 Total 4800 Predetermned rate per hour 400 Raw Material Dec.1 Accounts payable 26000 Dec.5 Work in process (Job.#1) 3550 Dec.15 Work in process (Job#2) 4010 Dec.31 Balance C/o 18440 26000 26000 Accounts Payable Dec.1 Raw material 26000 Dec.16 Manufacturing Overhead 1200 Dec.17 Advertising Expense 1400 Work in Process Dec.5 Raw Material 3550 Dec.26 Finished goods 6070 Dec.10 Salaries & Wages Payable 120 Dec.31 Balance C/o 5270 Dec.15 Raw Material 4010 Dec.22 Manufacturing Overhead 2400 Dec.31 Salaries & Wages Payable 60 Dec.31 Manufacturing Overhead 1200 11340 11340 Manufacturing Overhead Dec.10 Salaries & Wages Payable 3500 Dec.22 Work in process 2400 Dec.16 Accounts Payable 1200 Dec.31 Work in process 1200 Dec.20 Depreciation 150 dec.31 Cost of goods sold 1250 4850 4850 Cost of goods sold Dec.26 Finished goods 3550 Dec.31 Income summary 4650 Dec.31 Manufacturing overhead 1100 4650 4650 Finished Goods Dec.31 Work in process 6070 Dec.31 Cost of goods sold 6070 6070 6070 Accounts Receivable Dec.28 Sales 31000 Sales Dec.28 Accounts Receivable 31000 Salaries & Wages Expense Dec.10 Salaries & Wages Payable 2000 Salaries & Wages Payable Dec.10 Work in process 120 Dec.10 Manufacturing Overhead 3500 Dec.10 Salaries & Wages Expense 2000 Dec.31 Work in process 60 Advertising Dec.17 Accounts Payable 1400 Depreciation Dec.20 Accumulated Depreciation 750 Manufacturing overhead 150 Accumulated Depreciation Dec.20 Depreciation 750 THUNDERDUCK CUSTOM TABLE INC. Schedule of cost of goods manufactured For the month ended December 31 , 20XX DM purchases 26000 Less: Ending Raw nmaterial 18440 DM used 7560 DL 180 MOH applied 3600 Cost aded to WIP 11340 Less: WIP ennding 5270 COGMF 6070 THUNDERDUCK CUSTOM TABLE INC. Schedule of cost of goods sold For the month ended December 31 , 20XX Beg. Finished goods 0 Cost of goods manufactured 6070 Available for sale 6070 Ending finished goods 0 COGS befre adjustment 6070 Add: Overhead adjustment 1250 Adjusted COGS 7320 THUNDERDUCK CUSTOM TABLE INC. Income statement For the month ended December 31 , 20XX Sales Revenue 31000 Less: COGS 7320 Gross Margin / Profit 23680 Less: Expenses: Salaries and wages 2000 Advertising 1400 Depreciation 600 Total expenses 4000 Net operating income 19680
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.