In this assignment you will be required to complete tasks related to job costing. Download the...

 

 

 

 

 

 

 

 

 

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In this assignment you will be required to complete tasks related to job costing. Download the document, complete the required information, save the document, and submit the assignment in Blackboard. Due Date: October 7, 2020. Submit as an attachment in Blackboard in the Assignment for October 1- 7: Module 18 Content Area. Total Possible Points = 50 points. Custom Fabric Ventures is a small company that produces fabric-based wardrobe accessories (such as, handbags, scarves, and headbands) and home accessories (such as placemats, pillows, and window treatments). The company keeps a limited number of popular items in stock, but primarily produces custom orders. Customers are able to choose from a wide selection of styles, sizes, and fabrics for each type of product. Most of the company's customers are small boutiques, home décor shops, and home- decorators who serve clientele with discerning tastes. As a result, customers expect high-quality products. The sales staff of Custom Fabric Ventures has just received the following order: Customer: Katie's Boutique Order Date: 6/2/2020 Order Due Date: 6/15/2020 Description: Black & White Handbag Custom Fabric Ventures Customer Order Form Model Number: Quantity BW14923 8 Unit Sales Price $75 Total $600 Due to its popularity, the Black and White Handbag (BW14293) is normally a stock item. However, the handbag is currently out of stock. Rather than producing only enough units to fill Katie's order, management would like to produce a job (Job 114) that is large enough to fill Katie's order and replenish stock. The fabric used for this job can be stacked four layers deep for cutting, while still maintaining the quality and precision of the cut. Therefore, the company is able to realize some economies of scale by producing the handbags in multiples of 4. Therefore, management has decided to produce 40 units in this job to have a minimum of 30 handbags left in stock after Katie's order has been filled. Your primary task is to determine the cost of producing Job 114 so that you can calculate the gross profit on the sale to Katie's Boutique. As part of this process, you will be required to schedule production, purchase any raw materials that are not currently in stock, requisition materials for the job, and complete the job cost record. The following step-by-step requirements will guide you through the entire job costing process. The documents you will encounter in this case are normally completed electronically rather than manually. In addition, these documents often interface with each other electronically in order to transfer data in real-time, eliminate tedious calculations, and prevent errors. However, the underlying process is the same regardless of whether the company uses electronic or manual documents. Req. 1 (4 points): Before the year began, Custom Fabric Ventures estimated the following overhead costs for the year: Type of Cost Indirect plant labor Plant utilities Lease and property taxes on the plant Depreciation on production equipment (Equipment originally costing $700,000 three year ago is being depreciated over a 5 year useful life using straight-line depreciation. No salvage value is expected.) Indirect materials to be used in the plant 1 Estimated total cost for the year 35,000 40,000 130,000 140,000 25,000 Calculate the company's predetermined manufacturing overhead rate, assuming the company uses direct labor hours as its allocation base. Estimated total direct labor hours are 50,000. Req. 2 (4 points): The production engineers have given you the materials requirements for each Black & White handbag. Assume that no efficiencies in materials can be achieved by producing more than one unit per batch. Complete the Bill of Materials for Job # 114 found below. Be sure to include the quantity being produced in the Job as well as the total quantity needed for each direct material. Model: BW14923 Quantity: Part Number BWFF BWCheck BFringe BStrap PICan Int4 units Description BILL OF MATERIALS JOB 114 Black and White Floral Fabric Black and White Checkered Fabric Black Fringe Trim Black shoulder strapping Plastic Canvas Interfacing: Level 4 sturdiness rating Quantity Needed per unit 1/2 yard 3/4 yard 1 yard 1 and 3/4 yard 1/4 sheet 1/2 yard Total Quantity needed 20 40 2 Req. 3 (4 points): The production engineers have also given you the production labor requirements for each individual bag produced, assuming one bag is produced at a time: Req. 3 (4 points): The production engineers have also given you the production labor requirements for each individual bag produced, assuming one bag is produced at a time: Cutting time: 30 minutes per bag; Sewing time: 70 minutes per bag; Ironing time: 8 minutes per bag Since each bag must be sewn and ironed individually, no sewing and ironing labor efficiencies can be achieved by producing larger batch sizes. Recall, however, that fabric can be stacked for cutting purposes, such that the material for four bags can be cut in the same amount of time it would take to cut one individual bag. Compute the estimated labor time requirement for producing Job 114. TOTAL hours required for Job 114: Req. 4 (4 points): Consult the Raw Materials records to determine the types and quantities of materials you currently have in stock. Determine which types of materials you need to purchase for Job 114 and how much of each you'll need. List the materials that need to be purchased, along with the quantity of each needed: Req. 5 (4 points): Complete the purchase order (supplier, date needed, item number, quantity, cost, total, total for the whole order) assuming you are only buying what you need for this job, and no other jobs. Price list is provided at the end. No shipping is charged. Note: The supplier only allows you to order in increments of 5 yards at time, so you may have to buy a little more than what you need. This is not a problem for your company, as it can always use large pieces of leftover material for other jobs. Custom Fabric Ventures also has a standing contract with Mattel to produce clothing for dolls. Thus, small fabric remnants can always be used for the toy clothing line. + Supplier: Date ordered: 6/3 Date needed by: Item Number TOTAL Quantity Purchase Order Cost per yard Total Cost $ Req. 6 (4 points): Assume shipments of all supplies arrive on 6/9. Your receiving personnel have checked the receipts against the Purchase Order and Invoice, and have noted no discrepancies in the ordered quantities or prices. Since the company keeps perpetual inventory records, update the Raw Materials Records for the materials received and the new balance in stock. Update both the physical quantities and costs. The company uses First-In, First-Out (FIFO) as its inventory flow assumption. If needed, keep track of separate inventory price layers. Req. 7 (4 points): The scheduled start date for the job has arrived. In order to begin production the materials for the job are needed in the plant. Production would like to requisition all needed materials at one time. Complete the Materials Requisition (fill in the date, Job #, and quantity needed) so that the inventory storeroom personnel know the quantities and types of material to pick. 0 3 Date: Job: Part number BWFF BWCheck BFringe BStrap PICan Int4 Description Materials Requisition Number: # 6786 Black and White Floral Fabric Black and White Checkered Fabric Black Fringe Trim Black shoulder strapping Plastic Canvas Interfacing: Level 4 rating Total Quantity Needed Unit Cost Total Cost Req. 8 (4 points): The storeroom personnel correctly pick the direct materials and send them to production. Complete the cost information on the Materials Requisition above, assuming the company uses First-In, First-Out (FIFO) as its inventory flow assumption. Req. 9 (4 points): Start a Job Cost Record for Job 114 (see below). Record the direct materials used by the job by recording the materials requisition number and the total cost of materials requisitioned. Req. 10 (4 points): Using the Labor Time Records for the week (provided below), determine how much direct labor cost to assign to Job 114. Record the direct labor used by the job by recording the labor time record numbers, hours worked, and total DL cost on the job cost record. Req. 11 (4 points): Calculate the amount of manufacturing overhead to allocate to Job 114. Show your calculations on the job cost record. Req. 12 (3 points): Complete the job cost record. Determine the total job cost as well as the cost of each handbag in the job. Req. 13 (3 points): Calculate the gross profit on the sale to Katie's Boutique: + Job Number: Customer or Stock: Job description: Date Started: Quantity: Job Cost Record Date Completed: Manufacturing Cost Information: Direct Materials (list Materials Requisition # and cost) Direct Labor (list labor time record # and cost) Total Job Cost Number of units Cost per Unit Manufacturing Overhead (show calculation of amount allocated) Cost Summary $ $ $ $ $ units Item No. BWFF Date Units 6/1 Item No. BWCheck JAAAAAAAAAAA Fabric Date Received Cost 6/1 Total Item No. BFringe Raw Materials Record Received Date Units Cost Total 6/1 Description: Black and White Floral Fabric Balance Cost Total Used Requisition Units Cost Total Number Raw Materials Record Received Used Units Cost Total Requisition Units Cost Total Units Number Units Raw Materials Record 6 yds Description: Black & White Checkered Used Requisition Units Cost Total Number $6.00 $36.00 Balance Cost Description: Black Fringe Trim 20 yd $8.00 $160.00 3 yd Total Balance Units Cost Total $3.00 $9.00 Authorized Suppliers: JoAnne Fabrics Part Number BWFF FF620 J293 DB524 RD590 Atone BWCheck GrSwirl wwwN PICan WANDE Int4 Int 5 www RRHPink BBead BFringe sanaadha OGStrap JoAnne Fabrics- Commercial Division Name Black and White Floral Funky Floral Jacobean Denim Block Razzle Dazzle Aqua Tone Black & White Check Green Swirel Plastic Canvas BStrap aaaaa Interfacing-level 4 Interfacing-level 5 Rik Rak- Hot Pink Black Beads Black Fringe Olive Green Strapping Black Shoulder Strapping Price per yard $6.50 $3.25 $12.00 $8.50 $3.50 $2.75 $7.00 $9.50 $1.00 $4.00 $4.50 $2.75 $5.75 $3.00 $2.50 $2.00 In this assignment you will be required to complete tasks related to job costing. Download the document, complete the required information, save the document, and submit the assignment in Blackboard. Due Date: October 7, 2020. Submit as an attachment in Blackboard in the Assignment for October 1- 7: Module 18 Content Area. Total Possible Points = 50 points. Custom Fabric Ventures is a small company that produces fabric-based wardrobe accessories (such as, handbags, scarves, and headbands) and home accessories (such as placemats, pillows, and window treatments). The company keeps a limited number of popular items in stock, but primarily produces custom orders. Customers are able to choose from a wide selection of styles, sizes, and fabrics for each type of product. Most of the company's customers are small boutiques, home décor shops, and home- decorators who serve clientele with discerning tastes. As a result, customers expect high-quality products. The sales staff of Custom Fabric Ventures has just received the following order: Customer: Katie's Boutique Order Date: 6/2/2020 Order Due Date: 6/15/2020 Description: Black & White Handbag Custom Fabric Ventures Customer Order Form Model Number: Quantity BW14923 8 Unit Sales Price $75 Total $600 Due to its popularity, the Black and White Handbag (BW14293) is normally a stock item. However, the handbag is currently out of stock. Rather than producing only enough units to fill Katie's order, management would like to produce a job (Job 114) that is large enough to fill Katie's order and replenish stock. The fabric used for this job can be stacked four layers deep for cutting, while still maintaining the quality and precision of the cut. Therefore, the company is able to realize some economies of scale by producing the handbags in multiples of 4. Therefore, management has decided to produce 40 units in this job to have a minimum of 30 handbags left in stock after Katie's order has been filled. Your primary task is to determine the cost of producing Job 114 so that you can calculate the gross profit on the sale to Katie's Boutique. As part of this process, you will be required to schedule production, purchase any raw materials that are not currently in stock, requisition materials for the job, and complete the job cost record. The following step-by-step requirements will guide you through the entire job costing process. The documents you will encounter in this case are normally completed electronically rather than manually. In addition, these documents often interface with each other electronically in order to transfer data in real-time, eliminate tedious calculations, and prevent errors. However, the underlying process is the same regardless of whether the company uses electronic or manual documents. Req. 1 (4 points): Before the year began, Custom Fabric Ventures estimated the following overhead costs for the year: Type of Cost Indirect plant labor Plant utilities Lease and property taxes on the plant Depreciation on production equipment (Equipment originally costing $700,000 three year ago is being depreciated over a 5 year useful life using straight-line depreciation. No salvage value is expected.) Indirect materials to be used in the plant 1 Estimated total cost for the year 35,000 40,000 130,000 140,000 25,000 Calculate the company's predetermined manufacturing overhead rate, assuming the company uses direct labor hours as its allocation base. Estimated total direct labor hours are 50,000. Req. 2 (4 points): The production engineers have given you the materials requirements for each Black & White handbag. Assume that no efficiencies in materials can be achieved by producing more than one unit per batch. Complete the Bill of Materials for Job # 114 found below. Be sure to include the quantity being produced in the Job as well as the total quantity needed for each direct material. Model: BW14923 Quantity: Part Number BWFF BWCheck BFringe BStrap PICan Int4 units Description BILL OF MATERIALS JOB 114 Black and White Floral Fabric Black and White Checkered Fabric Black Fringe Trim Black shoulder strapping Plastic Canvas Interfacing: Level 4 sturdiness rating Quantity Needed per unit 1/2 yard 3/4 yard 1 yard 1 and 3/4 yard 1/4 sheet 1/2 yard Total Quantity needed 20 40 2 Req. 3 (4 points): The production engineers have also given you the production labor requirements for each individual bag produced, assuming one bag is produced at a time: Req. 3 (4 points): The production engineers have also given you the production labor requirements for each individual bag produced, assuming one bag is produced at a time: Cutting time: 30 minutes per bag; Sewing time: 70 minutes per bag; Ironing time: 8 minutes per bag Since each bag must be sewn and ironed individually, no sewing and ironing labor efficiencies can be achieved by producing larger batch sizes. Recall, however, that fabric can be stacked for cutting purposes, such that the material for four bags can be cut in the same amount of time it would take to cut one individual bag. Compute the estimated labor time requirement for producing Job 114. TOTAL hours required for Job 114: Req. 4 (4 points): Consult the Raw Materials records to determine the types and quantities of materials you currently have in stock. Determine which types of materials you need to purchase for Job 114 and how much of each you'll need. List the materials that need to be purchased, along with the quantity of each needed: Req. 5 (4 points): Complete the purchase order (supplier, date needed, item number, quantity, cost, total, total for the whole order) assuming you are only buying what you need for this job, and no other jobs. Price list is provided at the end. No shipping is charged. Note: The supplier only allows you to order in increments of 5 yards at time, so you may have to buy a little more than what you need. This is not a problem for your company, as it can always use large pieces of leftover material for other jobs. Custom Fabric Ventures also has a standing contract with Mattel to produce clothing for dolls. Thus, small fabric remnants can always be used for the toy clothing line. + Supplier: Date ordered: 6/3 Date needed by: Item Number TOTAL Quantity Purchase Order Cost per yard Total Cost $ Req. 6 (4 points): Assume shipments of all supplies arrive on 6/9. Your receiving personnel have checked the receipts against the Purchase Order and Invoice, and have noted no discrepancies in the ordered quantities or prices. Since the company keeps perpetual inventory records, update the Raw Materials Records for the materials received and the new balance in stock. Update both the physical quantities and costs. The company uses First-In, First-Out (FIFO) as its inventory flow assumption. If needed, keep track of separate inventory price layers. Req. 7 (4 points): The scheduled start date for the job has arrived. In order to begin production the materials for the job are needed in the plant. Production would like to requisition all needed materials at one time. Complete the Materials Requisition (fill in the date, Job #, and quantity needed) so that the inventory storeroom personnel know the quantities and types of material to pick. 0 3 Date: Job: Part number BWFF BWCheck BFringe BStrap PICan Int4 Description Materials Requisition Number: # 6786 Black and White Floral Fabric Black and White Checkered Fabric Black Fringe Trim Black shoulder strapping Plastic Canvas Interfacing: Level 4 rating Total Quantity Needed Unit Cost Total Cost Req. 8 (4 points): The storeroom personnel correctly pick the direct materials and send them to production. Complete the cost information on the Materials Requisition above, assuming the company uses First-In, First-Out (FIFO) as its inventory flow assumption. Req. 9 (4 points): Start a Job Cost Record for Job 114 (see below). Record the direct materials used by the job by recording the materials requisition number and the total cost of materials requisitioned. Req. 10 (4 points): Using the Labor Time Records for the week (provided below), determine how much direct labor cost to assign to Job 114. Record the direct labor used by the job by recording the labor time record numbers, hours worked, and total DL cost on the job cost record. Req. 11 (4 points): Calculate the amount of manufacturing overhead to allocate to Job 114. Show your calculations on the job cost record. Req. 12 (3 points): Complete the job cost record. Determine the total job cost as well as the cost of each handbag in the job. Req. 13 (3 points): Calculate the gross profit on the sale to Katie's Boutique: + Job Number: Customer or Stock: Job description: Date Started: Quantity: Job Cost Record Date Completed: Manufacturing Cost Information: Direct Materials (list Materials Requisition # and cost) Direct Labor (list labor time record # and cost) Total Job Cost Number of units Cost per Unit Manufacturing Overhead (show calculation of amount allocated) Cost Summary $ $ $ $ $ units Item No. BWFF Date Units 6/1 Item No. BWCheck JAAAAAAAAAAA Fabric Date Received Cost 6/1 Total Item No. BFringe Raw Materials Record Received Date Units Cost Total 6/1 Description: Black and White Floral Fabric Balance Cost Total Used Requisition Units Cost Total Number Raw Materials Record Received Used Units Cost Total Requisition Units Cost Total Units Number Units Raw Materials Record 6 yds Description: Black & White Checkered Used Requisition Units Cost Total Number $6.00 $36.00 Balance Cost Description: Black Fringe Trim 20 yd $8.00 $160.00 3 yd Total Balance Units Cost Total $3.00 $9.00 Authorized Suppliers: JoAnne Fabrics Part Number BWFF FF620 J293 DB524 RD590 Atone BWCheck GrSwirl wwwN PICan WANDE Int4 Int 5 www RRHPink BBead BFringe sanaadha OGStrap JoAnne Fabrics- Commercial Division Name Black and White Floral Funky Floral Jacobean Denim Block Razzle Dazzle Aqua Tone Black & White Check Green Swirel Plastic Canvas BStrap aaaaa Interfacing-level 4 Interfacing-level 5 Rik Rak- Hot Pink Black Beads Black Fringe Olive Green Strapping Black Shoulder Strapping Price per yard $6.50 $3.25 $12.00 $8.50 $3.50 $2.75 $7.00 $9.50 $1.00 $4.00 $4.50 $2.75 $5.75 $3.00 $2.50 $2.00

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Req 1 To calculate the companys predetermined manufacturing overhead rate we need to divide the estimated total overhead costs for the year by the estimated total direct labor hours Total estimated ov... View the full answer