A B D H M N 1 Part 1: Below is the company Information that you...
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A B D H M N 1 Part 1: Below is the company Information that you will use in completing Part 1. The requirements are listed after this company information and you should provide your solution below each of the requirements. 3 Sheds, Inc. designs and builds sheds and outbuildings for individual customers. 4 The company uses a job cost system and treats each customer's order as a separate job. 5 6 At the beginning of January the company had the following raw material inventory: $435 7 B 9 At the beginning of January the company had the following work-in-process inventories: Job 21 0 Job 24 $2,000 $4,000 1 2 During January, the following activities took place: 3 1. Started jobs 26 and 27. 4 2. Purchased raw materials in January: $6,000 5 Requisitioned (or used) the following raw materials to the specific jobs: 6 Job 21 $1,500 7 Job 24 $1,800 8 Job 26 $1,200 9 Job 27 $900 $5,400 20 21 3. Incurred January manufacturing payroll: 22 Direct Labor 23 Job 21 $800 24 Job 24 $1,900 25 267890-23: Job 26 $950 Job 27 $1,400 $5,050 Indirect labor $600 4. Incurred additional manufacturing overhead costs for January: Production equipment rent Manufacturing supplies purchased and used Factory utilities $500 $600 $300 $1,400 4. Incurred additional manufacturing overhead costs for January: Production equipment rent Manufacturing supplies purchased and used Factory utilities 5. Applied manufacturing o and predicted annual direct material cost as follows: Predicted Annual Overhead Predicted Annual Direct Material cost 6. Completed jobs 24 and 27 in January. $25,000 $100,000 7. Customer for Job 24 picked up completed job and was billed the following: Job 24 10,000 8. The company had the following period costs that they incurred: Sales commissions Administrative salaries $100 $900 $500 $600 $300 $1,400 Required: You need to use cell references to complete Part 1 in your response and calculations. 0.25 based on Direct Materials as the driver 1. Develop the predetermined overhead rate. 2. Complete the job cost sheets provided below for the month of January: Beginning Balance Current costs: Job 21 $2,000 Job 24 Job 26 Job 27 4,000 Direct materials $1,500 $1,800 Direct Labor Applied overhead $800 $375 Total $4,675 1,900 $450 $8,150 1,200 950 $300 $2,450 900 1,400 $225 $2,525 3. Determine the ending Work-In-Process Inventory at the end of January and provide the Job number(s) still in Work-in-Process at the end of January and the determine total cost of ending work in process for January. Job 21 Job 26 $2,338 Total $1,225 $3,563 COGM-Beginning WIP inventory + total manufacturing costs-ending WIP inventory Ending WIP (Beginning WIP inventory + total manufacturing costs) - COGM 4. Determine the Ending Finished Goods for January and provide the Job number(s) in Finished Goods at the end of January and determine the total cost of ending finished goods for January. Job 24 Job 27 Total Finished goods inventory Beginning finished goods inventory + (COGM-COGS) 5. Determine the Cost of Goods Sold for January and provide the Job number(s) in Cost of Goods Sold for January and determine the total cost of goods sold for January. 6. Determine the ending raw material balance for January, which you will need when preparing the Statement of Cost of Goods Manufacturing for the month ended. 7. Prepare a statement of cost of goods manufactured for January below. Use Manufacturing Overhead applied in your statement. Shed Inc. Statement of Cost of Goods Manufactured For Month ending January 31, 20XX A B C D E F G H JU 97 98 J K L M N 99 100 101 102 8. Prepare an Income Statement for January 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. Shed Inc. 103 104 Income Statement For Month ending January 31, 20XX 105 106 107 108 109 110 111 112 9. Determine the underapplied or overapplied manufacturing overhead for January. 113 114 115 116 117 118 119 120 10. Prepare a Column chart using Excel Insert Chart function below showing the 3 product costs that were added to the jobs in January. 121 122 123 124 125 126 127 A B D H M N 1 Part 1: Below is the company Information that you will use in completing Part 1. The requirements are listed after this company information and you should provide your solution below each of the requirements. 3 Sheds, Inc. designs and builds sheds and outbuildings for individual customers. 4 The company uses a job cost system and treats each customer's order as a separate job. 5 6 At the beginning of January the company had the following raw material inventory: $435 7 B 9 At the beginning of January the company had the following work-in-process inventories: Job 21 0 Job 24 $2,000 $4,000 1 2 During January, the following activities took place: 3 1. Started jobs 26 and 27. 4 2. Purchased raw materials in January: $6,000 5 Requisitioned (or used) the following raw materials to the specific jobs: 6 Job 21 $1,500 7 Job 24 $1,800 8 Job 26 $1,200 9 Job 27 $900 $5,400 20 21 3. Incurred January manufacturing payroll: 22 Direct Labor 23 Job 21 $800 24 Job 24 $1,900 25 267890-23: Job 26 $950 Job 27 $1,400 $5,050 Indirect labor $600 4. Incurred additional manufacturing overhead costs for January: Production equipment rent Manufacturing supplies purchased and used Factory utilities $500 $600 $300 $1,400 4. Incurred additional manufacturing overhead costs for January: Production equipment rent Manufacturing supplies purchased and used Factory utilities 5. Applied manufacturing o and predicted annual direct material cost as follows: Predicted Annual Overhead Predicted Annual Direct Material cost 6. Completed jobs 24 and 27 in January. $25,000 $100,000 7. Customer for Job 24 picked up completed job and was billed the following: Job 24 10,000 8. The company had the following period costs that they incurred: Sales commissions Administrative salaries $100 $900 $500 $600 $300 $1,400 Required: You need to use cell references to complete Part 1 in your response and calculations. 0.25 based on Direct Materials as the driver 1. Develop the predetermined overhead rate. 2. Complete the job cost sheets provided below for the month of January: Beginning Balance Current costs: Job 21 $2,000 Job 24 Job 26 Job 27 4,000 Direct materials $1,500 $1,800 Direct Labor Applied overhead $800 $375 Total $4,675 1,900 $450 $8,150 1,200 950 $300 $2,450 900 1,400 $225 $2,525 3. Determine the ending Work-In-Process Inventory at the end of January and provide the Job number(s) still in Work-in-Process at the end of January and the determine total cost of ending work in process for January. Job 21 Job 26 $2,338 Total $1,225 $3,563 COGM-Beginning WIP inventory + total manufacturing costs-ending WIP inventory Ending WIP (Beginning WIP inventory + total manufacturing costs) - COGM 4. Determine the Ending Finished Goods for January and provide the Job number(s) in Finished Goods at the end of January and determine the total cost of ending finished goods for January. Job 24 Job 27 Total Finished goods inventory Beginning finished goods inventory + (COGM-COGS) 5. Determine the Cost of Goods Sold for January and provide the Job number(s) in Cost of Goods Sold for January and determine the total cost of goods sold for January. 6. Determine the ending raw material balance for January, which you will need when preparing the Statement of Cost of Goods Manufacturing for the month ended. 7. Prepare a statement of cost of goods manufactured for January below. Use Manufacturing Overhead applied in your statement. Shed Inc. Statement of Cost of Goods Manufactured For Month ending January 31, 20XX A B C D E F G H JU 97 98 J K L M N 99 100 101 102 8. Prepare an Income Statement for January 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. Shed Inc. 103 104 Income Statement For Month ending January 31, 20XX 105 106 107 108 109 110 111 112 9. Determine the underapplied or overapplied manufacturing overhead for January. 113 114 115 116 117 118 119 120 10. Prepare a Column chart using Excel Insert Chart function below showing the 3 product costs that were added to the jobs in January. 121 122 123 124 125 126 127
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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