Job Order Costing

Using Excel to calculate a predetermined overhead allocation rate, journalize and post manufacturing journal entries, and adjust for overallocated or underallocated overhead.

Cedar River Trikes manufactures three-wheeled bikes for adults. The company allocates manufacturing overhead based on machine hours. Cedar River expects to incur $260,000 of manufacturing overhead costs, and to use 10,000 machine hours during 2018. Cedar River reported the following inventory balances at May 31, 2018: Raw Materials Inventory $26,000 $44,000 Work-in-Process Inventory $19,000 Finished Goods Inventory $44,000. During June, 2018, Cedar River actually used 1,100 machine hours. Use the blue shaded areas on the ENTER ANSWERS tabs for inputs. ALWAYS use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values. Requirements:

1. Compute the predetermined overhead allocation rate for 2018. Use the blue shaded areas for inputs.

2. Use Excel to journalize the transactions in the general journal. The account titles are available when you click the down-arrow. Use the Increase Indent button on the Home tab to indent items.

3. Post the transactions to T-accounts. The balances in the T-accounts are automatically updated. Enter the beginning balances for the inventories. Assume the rest of the accounts have beginning balances of zero.

4. Adjust the manufacturing overhead account. a. Prepare the journal entry. b. Post to T-accounts.

5. List the ending balances for Raw Materials Inventory, Work-in-Process Inventory.

6. Complete the Schedule of Cost of Goods Manufactured for June 2018.

7. Complete the Cost of Goods Sold schedule for June 2018.

8. Prepare the Income Statement in good form for June 2018.

Job Order Costing Using Excel to calculate a predetermined overhead allocation rate, journalize and post manufacturing journal entries, and adjust for overallocated or underallocated overhead. Cedar River Trikes manufactures three-wheeled bikes for adults. The company allocates manufacturing overhead based on machine hours. Cedar River expects to incur $260,000 of manufacturing overhead costs, and to use 10,000 machine hours during 2018. Cedar River reported the following inventory balances at May 31, 2018: Raw Materials Inventory $26,000 Work in Process Inventory $19,000 Finished Goods Inventory $44,000 During June, 2018, Cedar River actually used 1,100 machine hours. Use the blue shaded areas on the ENTERANSWERS tabs for inputs. ALWAYS use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values Requirements: 1 Compute the predetermined overhead allocation rate for 2018. Use the blue shaded areas for inputs. 2 Use Excel to journalize the transactions in the general Journal. The account titles are available when you click the down-arrow. Use the increase Indent button on the Home tab to indent items. 3 Post the transactions to T-accounts. The balances in the T-accounts are automatically updated. Enter the beginning balances for the inventories. Assume the rest of the accounts have beginning balances of zero. 4 Adjust the manufacturing overhead account. a. Prepare the journal entry. b. Post to T-accounts. 5 Ust the ending balances for Raw Materials inventory, Work-in-Process Inver 6 Complete the Schedule of cost of Goods Manufactured for June 2018 7 Complete the cost of Goods Sold schedule for June 2018 8 Prepare the income Statement in good form for June 2018 B 9 1 Requirement 1 2 Compute the predetermined overhead allocation rate for fiscal year 2018 (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the instructions tab you will 3 be marked wrong. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values. Predetermined overhead allocation rate Total estimated overhead costs/Total estimated machine hours 5 6 7 Total estimated overhead costs B 9 10 Total estimated machine hours 11 12 Predetermined overhead allocation rate 13 14 15 16 HINTS 17 Cell Hint: 18 18,010 Refer to the problem statement for the inputs. Do not use an equal sign () when entering a numeric value. 19 1. Requirement 2 Journalize the transactions in the general journal. The account titles are available when you click the 2 down-arrow. Use the increase Indent button on the Home tab to indent items. (Scroll down to view hints.) (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Enter all amounts as positive values. Do not use a minus 3 sign or parentheses for any values. Account/Explanation Debit Credit Date la) Purchased materials on account, $150,000 (b) Used direct materials, $110,000 c) Manufacturing wages incurred totaled 590,000, 94% was direct labor and 6% was indirect labor. (d) 20 Used indirect materials, $5,500 23 24 le) $888888889898 E- 25 26 Incurred other manufacturing overhead on account, $22,000 10 28 Allocated manufacturing overhead for June 2018 Machine hours: 1.100 during June 30 32 33 16 $230,000 of trikes were completed during June 35 36 37 38 Sold $450,000 oftrikes on account 42 Sold S450,000 of trikes on account. The cost of the tribes sold was $245.000 1 Requirement 3 Post the transactions. The balances in the T-accounts are automatically updated. Enter the beginning balances for the inventories. Assume the rest of the accounts have beginning balances of zero (do not enter zero as the 2 beginning balances). (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Enter all amounts as positive values. Do not use a minus sign or 3 parentheses for any values. 4 5 Accounts Receivable Accounts Payable Sales Revenue 6 7 8 0 0 9 0 Raw Materials Inventory 10 11 12 bal. 13 Wages Payable Manufacturing Overhead N 14 0 0 15 16 Work-in-Process Inventory 17 bal. 0 18 19 20 21 Cost of Goods Sold 0 22 Finished Goods Inventory 23 24 bal. 0 25 0 26 27 99 Requirement 4 Adjust the manufacturing overhead account. a. Prepare the journal entry. 1 b. Post the journal entry to the ENTERANSWERS3 tab. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will 5 be marked wrong. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values. 6 7 Date Account/Explanation Debit Credit 8 9 10 Adjusted manufacturing overhead. 11 12 13 Requirements 14 List the ending balances for Raw Materials Inventory, Work-in-Process Inventory. Finished Goods Inventory, and cost of Goods Sold. (Always use cell references and formulas where appropriate to receive full credit. Enter all amounts as positive values. Do not use a 15 minus sign or parentheses for any values.) 16 17 Account Ending balance 18 Raw Materials Inventory 19 Work-in-Process Inventory 20 Finished Goods Inventory 21 Adjusted Cost of Goods Sold 22 23 24 25 HINTS 26 Cell Hint: C8:09 In the appropriate cells, begin the formula with an equal sign (), and use cell references to the ENTERANSWERS3 tab to calculate the amount of adjusting entry. Do not refer to the ending 27 balance cells in your calculations. 28 C18:21 Use cell references to the ENTERANSWERS3 tab to enter the ending balances. 29 1 2 Requirement 6 Complete the Schedule of Cost of Goods Manufactured. (Always use cell references and formulas where appropriate to receive full credit. All values should be added as positive numbers.) 3 4 5 6 Schedule of Cost of Goods Manufactured 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 HINTS All values other than the value for Ending Work-in-Process Inventory should be entered as positive 23 values. Use minus sign to enter the value for Ending Work-in-Process Inventory. 24 Cell Hint: E10, D11:013, E16, C25 Use the numeric values from the Instructions tab for calculations. Do not use an 25 equal sign (=) when entering a single numeric value. 26 E14 Use the =SUM() function to calculate the total manufacturing costs incurred during period. 27 Requirement 7: Complete the cost of Goods Sold schedule. 1 2 3 4 Cedar River Trikes Schedule of Cost of Goods Sold Month Ended June 30, 2018 5 6 7 8 9 10 11 12 13 14 15 16 17 Requirement 8: Complete the income Statement. 18 19 Income Statement 20 21 22 23 24 25 26 27 28 29 30 31 HINTS All values should be entered as positive values where appropriate. Use minus sign to enter valuea 32 being deducted. 33 Cell | Hint: Use the numeric values from other tabs where appropriate. Do not use an equal sign (=) when 34 entering a single numeric value. 35 Use the =SUM() function to calculate subtotsis or totals where appropriate. 36