A.EE P Wiap Text Merge & Center - Alignment General $ % ) Number *89 Insert Conditional Formatas Cell Formatting Table Styles Styles Calculating the Cost of Jobs, Making Journal Entries, and preparing an income Statement. Racing Bikes, Inc., produces cu H TE F G Calculating the Cost of lobs, Making Tournal Entries, and Preparing an Income Statement. Racing Bikes, Inc., produces custom bicycles for professional racers. Each bike is built to customer specifications. During July, its first month of operations, Racing Bikes began production of four customer orders-jobs 1 through 4. The following transactions occurred during July. 1. Purchased bike parts totaling $14,400 2. Processed material requisitions for the following items: 2 3 Job 1 de materials 52.800 Job I direct rical Jobdirecte 5 3. Processed timesheets showing the following: Job de labor 30 hours 162, drochlubor (25 hours Jobdirector Os hours Sobrest labor15 hours director 2.1617 2.182.232.242.26 2.32 2.38 2.34 222 400I FURMULAS DAIA REVIEW VIEW . General D Wrap Text Merge & Center - D 3. A.EE E $ . % , * & Font Formatting Styles Alignment Table Styles Number $ 500 Job 1, direct labor (30 hours) Job 2, direct labor (25 hours) Job 3, direct labor 028 hours) Job 4, direct labor (15 hours) Indirect labor 2500 7 8 9 10 8 PDOH Job: 1 2 3 4 DUH 30 25 28 15 9 4. Applied overhead using a predetermined rate of $30 per direct labor hour 5. Completed and transferred to finished goods jobs 1, 2, and 3 6. Delivered jobs 1 and 2 to customers, billing them $6,000 for job 1 and $3,500 for job 2 (Hint: Two entries are required-one for the cost of the goods and another for the revenue.) 11 12 13 Required: 14 1. Calculate the production costs incurred in July for each of the four jobs. 2. Make the appropriate journal entry for each transaction described previously (Ithrough 6). Assume all 15 payments will be made next month. 16 3. How much gross profit did Racing Bikes, Inc., earn from the sale of job 2? 4. Assume selling costs totaled $1,000 and that general and administrative costs totaled $2,200. Prepare an 2.16 17 2.18 2.23 2.24 2.26 2.32 2.38 2.34 3.31 3.32 ... 3 AYOUT FORMULAS DATA REVIEW VIEW General Wrap Text Merge Center - A.EE + $ . % 869 3. Font Conditional Formatas Cell Formatting Table Styles Styles Insert - Alignment Number 13 Required: 14 1. Calculate the production costs incurred in July for each of the four jobs. 2. Make the appropriate journal entry for each transaction described previously (Ithrough 6). Assume all 15 payments will be made next month. 16 3. How much gross profit did Racing Bikes, Inc., earn from the sale of job 2? 4. Assume selling costs totaled $1,000 and that general and administrative costs totaled $2,200. Prepare an income statement for Racing Bikes for the month of July. (Assume there is no adjustment to cost of goods sold for underapplied or overapplied overhead.) plied overhead.) 19 #1 2,800 500 1,250 430 1,550 465 780 210 21 22 23 24 25 Direct Materials Direct Labor Overhead Applied Total Cost of job 27 july Raw Materials Accounts Payable 2.16 17 2.18 2.23 224 2.262.32 2.38 2.34 331 3.32 dopo q e ne x P3 hp General . ESSE Wrap Text Merge & Center U. - A $ . % 92 Condition Formattin Font Alignment Number julyRaw Materials Accounts Payable 888 to 8 2.16 17 2.18 2.23 2.24 2.26 2.32 2.38 2.34 3.31 3.32