Cherry Cotta makes custom ordered clay pots for residential gardens. Below is cost information regarding its latest job. Cherry cotta makes custom ordered clay pots for residential gardens. Below is cost information regarding its latest job.

a$.$ Materials were purchased on account.

$$18,996$

b$.$ A materials requisition form shows an amount of materials required for this job, $10\%$ of which were used for general use.

c$.$ A labor time sheet shows the following.

d$.$ The additional list below shows costs incurred.

e$.$ At the beginning of the year, overhead costs and workload was estimated. Direct Labor hours drives the cost of overhead.

Required:

Complete the T$-$Accounts below.

Note: When calculating amounts below, use the total in the T$-$Accounts.

Determine the Cost of Goods Manufactured.

Cost of Goods Manufactured

$$16,98B$

Create a journal entry to dispose of the Over$/$Underapplied Overhead.

Determine the Cost of Goods sold after disposing of the Over$/$Underapplied Overhead.

Determine the Gross Profit for the month.

a$.$ Materials were purchased on account. $$18,996$

b$.$ A materials requisition form shows an amount of materials required for this job, $10\%$ of which were used for general use. $$12,45010\%$

c$.$ A labor time sheet shows the following.

Job $345$

Employee Role Hours Rate Total

T$.$ Walker Crafting $23$ $$12\mathrm{.}50$ $$287\mathrm{.}50$

M$.$ Foster Firing $18$ $$13\mathrm{.}75$ $$247\mathrm{.}50$

C$.$ Watson Maintenance $6$ $$11\mathrm{.}00$ $$66\mathrm{.}00$

K$.$ Willis Supervisor $10$ $$23\mathrm{.}00$ $$230\mathrm{.}00$

$$831\mathrm{.}00$

d$.$ The additional list below shows costs incurred.

Factory Utilities $$395$

Advertising Expense $$625$

Administrative Duties $$348$

Factory Depreciation $$487$

Factory Property Taxes $$950$

e$.$ At the beginning of the year, overhead costs and workload was estimated. Direct Labor hours drives the cost of overhead.

Estimated Overhead Cost $$90,000$

Estimated Direct Labor Hours $1,500$

f$.$ By month's end, all previous jobs were completed, but only $80\%$ of the pots started this month were completed. $80\%$

g$.90\%$ of the previous batch of pots were sold, while $70\%$ of the pots completed this month were sold. $$22,000$ Total Sales $90\%70\%$

Required:

$1.$ Complete the T$-$Accounts below.

Raw Materials Work In Process Finished Goods

Debit Credit Debit Credit Debit Credit

$4,6855,6281,260$

$4,6851,260$

Cost of Goods Sold $5,628$ Sales Revenue

Debit Credit Debit Credit

Salaries$/$Wages Payable

Debit Credit

Period Cost

Debit Credit

Manufacturing Overhead

Debit Credit

Note: When calculating amounts below, use the total in the T$-$Accounts.

$2.$ Determine the Cost of Goods Manufactured.

Cost of Goods Manufactured

$3.$ Create a journal entry to dispose of the Over$/$Underapplied Overhead.

Date Account Debit Credit

$3/31/2022$

$4.$ Determine the Cost of Goods Sold after disposing of the Over$/$Underapplied Overhead.

Cost of Goods Sold

$5.$ Determine the Gross Profit for the month.

Gross Profit