10 May WHAT WAS THE PERIOD COST INCURRED FOR THE MONTH OF DECEMBER?
.494px;=”” block;=””>QUESTION 1 1. 1. You work for Thunderduck Custom Tables Inc. This is the first month of operations. The comdesigns and manufactures specialty tables. Each table is specially customized fo Q U E S T I O Step 1 You work for Thunderduck Custom Tables Inc. This is the first month of operations. The commanufactures specialty tables. Each table is specially customized for the customer. This moasked to develop and manufacture two new tables for customers. You will design and buildno nail no screw and no glue manufacturing ( no indirect materials used). You will be keepiincurred 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. Thunit basis.Table Top $2 300.00 Table Leg $800.00 Drawer$430.00The company uses a job order costing system and applies manufacturing overhead to jobs bhours.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 monthb. Rent for the factory per monthc. Depreciation of factory equipment per monthTotal Estimated manufacturing overhead $4 000.00$800.00$600.00$5 400.00 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 Step 3 The customer that has ordered Job #2 wants a table that is the same as Job #1 but wantsto the table. Step 4 The following is a list of transactions that need to be recorded for the company for activity inDecember. Record those in the “General Journal” tab of the excel file using the proper formafollowing accounts: Accounts Receivables Raw materials Work in process Finished goods Adepreciation Accounts payable Salaries and wages payable Sales revenue Manufacturinggoods sold Salaries and wages expense Advertising expenses and Depreciation expense. 1-Dec Raw Materials purchased on account $23 000. 5-Dec All Raw Materials needed for Job #1 were requisitioned from the material storage for use duAssume all materials are direct. (After you journalize this entry please enter the informationSheet) 10-Dec The following employee costs were incurred but not paid during the month: There are three assembly employees that spend 2 hours each $25 per hour to make the tabyou journalize this entry please enter the information into Job #1 Cost Sheet)Salary for supervisor of the factory $4 500. The cost of the direct materials that can be used to manufacture the table are as follows. These cost abasis.Table Top $2 300.00 Table Leg $800.00 Drawer$430.00The company uses a job order costing system and applies manufacturing overhead to jobs based on dhours.The company estimates that there will be 12 direct labor hours worked during themonth.The estimated manufacturing overhead cost for themonth is:a. Factory supervisor salary per monthb. Rent for the factory per monthc. Depreciation of factory equipment per monthTotal Estimated manufacturing overhead $4 000.00$800.00$600.00$5 400.00 What is the predetermined manufacturing overheadrate? StepThe first order you received was to manufacture a table using a table top and four legs. This is your Job2Step The customer that has ordered Job #2 wants a table that is the same as Job #1 but wants to also add3the table. The following is a list of transactions that need to be recorded for the company for activity in the montRecord those in the “General Journal” tab of the excel file using the proper format. Please use the followStepAccounts Receivables Raw materials Work in process Finished goods Accumulated depreciation Acc4Salaries and wages payable Sales revenue Manufacturing overhead Cost of goods sold Salaries andexpense Advertising expenses and Depreciation expense.1Raw Materials purchased on account $23 000.Dec 5All Raw Materials needed for Job #1 were requisitioned from the material storage for use during the mDec all materials are direct. (After you journalize this entry please enter the information into Job #1 Cost Sh10The following employee costs were incurred but not paid during the month:DecThere are three assembly employees that spend 2 hours each $25 per hour to make the table for Jobjournalize this entry please enter the information into Job #1 Cost Sheet)Salary for supervisor of the factory $4 500.Administrative Salary $2 000. 15- All Raw Materials needed for Job #2 were requisitioned from the material storage for use during the mDec all materials are direct. (After you journalize this entry please enter the information into Job #2 Cost Sh16Rent for the month of December for the factory building incurred but not paid $800.Dec 17Advertising costs incurred but not paid for the month was $1 400.Dec 20- Depreciation for the month of December was recorded on equipment was $750 ($150 for equipment uDec factory and the remainder for equipment used in selling and administrative activities). 22- Manufacturing overhead cost was applied based on direct labor hours to Job #1 based on the POHR deDec the “Job Cost Sheet”. (After you journalize this entry please enter the information into Job #1 Cost She26Job #1 was completed and transferred to Finished Goods during the month.Dec28- The completed table from Job #1 was sold on account to the customer for $28 000 during the month.Dec sure to account for the cost of the table that was sold using the cost from the job cost sheet.) Direct labor cost incurred but not paid for three employees to start manufacturing Job #2. The employ31worked one hour each three hours total $25 per hour during the month and they did not complete theDecjob. (After you journalize this entry please enter the information into Job #2 Cost Sheet) Manufacturing overhead cost was applied based on direct labor hours to Job #2 based on the POHR. O31labor hours were worked on Job #2 during the month. (After you journalize this entry please enter theDecJob #2 Cost Sheet)31Any underapplied or overapplied overhead for the month was closed out to Cost of Goods Sold.Dec Post the journal entries that you recorded on the “General Journal” tab to the “T-accounts” tab. This isStepfirst month of business so there will not be any beginning balances. Compute the balance for each T-a5of the entries have been posted. Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold on the “ScheStep and COGS” tab for Job #1 and Job #2 that were worked on during the month by the company. Make su6format noted in your book (pg. 87). (Hint: This is the company’s first month of operations and thereforebalances will be zero.) StepPrepare an Income Statement for the month using the Traditional Format on the “Income Statement” ta7StepAnswer the additional questions below8Check Figure: Cost of Goods Manufactured= $8 350 Net operating income=$14 250What is the ending balance for raw materials?What is the ending balance for work in process?What is the ending balance for finished goods?What is the actual manufacturing overhead cost incurred during December beforeadjustment?What is the total applied manufacturing overhead cost during December beforeadjustment? What is the unadjusted cost of goods sold?Was the manufacturing overhead for the month of Decemberoverapplied/underapplied ?What is the amount of Manufacturing overhead overapplied/underapplied?What is the adjusted cost of goods sold?What is gross margin?What is the total prime cost for Job#1?What is the total conversion cost for job #1?What is the total product cost for job#1?What was the period cost incurred for the month of December?What is the total variable cost incurred for Job #1(assume that all selling andadministrative cost and all manufacturing overhead costs are fixed.)?What is the contribution margin for Job #1 (assume that all selling and administrativecost and all manufacturing overhead costs are fixed.)?What would be the actual (not applied) total fixed manufacturing overhead costincurred for the company for the month if the order in Job #1 is for five tables instead of one table assuming this cost is with in the relevant range?
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