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Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold...

Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold and Income Statement;

this ie the jouranl entries

Pre-determined manufacturing overhead rate = Total estimated manufacturing overheads / Estimated direct labor hours = = $3600/12 hours = $300 per direct labor hour

Step 2:

Cost Sheet
Job # 1
Direct materials $
Table top 2000
Legs ($650 x 4) 2600
Drawer 0 4600
Direct labor cost @ $20 per hour (3x2x$30) 180
Manufacturing overheads $ (3x2x$300) 1800
Total manufacturing cost $ 6580

Step 3:

Cost Sheet
Job # 2
Direct materials $
Table top 2000
Legs ($650 x 4) 2600
Drawer 400 5000
Direct labor cost @ $20 per hour (3 x 1 x $30) 90
Manufacturing overheads $ (3 x 1 x $300) 900
Total manufacturing cost $ 5990

Step 4:

Date Account Titles and Explanation Debit Credit
01-Dec Raw Materials 20000
Accounts Payable 20000
(To record raw materials purchased on account)
05-Dec Work in process - Job # 1 4600
Raw Materials 4600
(To record raw materials requisitioned for Job # 1)
10-Dec Work in process - Job # 1 (3 x 2 hours x $30) 180
Salaries and Wages payable 180
(To record direct labor cost incurred)
10-Dec Manufacturing overhead 3000
Salaries and Wages payable 3000
(To record Factory Supervisor salary incurred)
10-Dec Salaries and Wages expense 2000
Salaries and Wages payable 2000
(To record administrative salary incurred)
15-Dec Work in process - Job # 2 5000
Raw Materials 5000
(To record raw materials requisitioned for Job # 2)
16-Dec Manufacturing overhead 500
Accounts Payable 500
(To record rent for factory building payable)
17-Dec Advertising expense 1400
Accounts Payable 1400
(To record advertising expense payable)
20-Dec Manufacturing overhead (factory equip.) 150
Depreciation expense (S&A equip.) 600
Accumulated Depreciation 750
(To record depreciation expense)
22-Dec Work in process - Job # 1 (2 x 3 hour x $300) 1800
Manufacturing overhead 1800
(To record manufacturing OH applied to Job # 1)
26-Dec Finished goods 6580
Work in process - Job # 1 6580
(To record cost of Job # 1 completed and transferred to FG)
28-Dec Accounts Receivable 25000
Sales Revenue 25000
(To record sale on account)
28-Dec Cost of goods sold 6580
Finished goods 6580
(To record cost of sales)
Sale of Job # 1
31-Dec Work in process - Job # 2 (3 x 1 hour x $30) 90
Salaries and Wages payable 90
(To record direct labor cost incurred)
31-Dec Work in process - Job # 2 (3 x 1 hour x $300) 900
Manufacturing overhead 900
(To record manufacturing OH applied to Job # 2)
31-Dec Cost of goods sold 950
Manufacturing overhead 950
(To close underapplied overheads)

answering these questions :

What is the ending balance for raw materials?
1. What is the ending balance for work in process?
2. What is the ending balance for finished goods?
3. What is the actual manufacturing overhead cost incurred during December before adjustment?
4. What is the total applied manufacturing overhead cost during December before adjustment?
5. What is the unadjusted cost of goods sold?
6. Was the manufacturing overhead for the month of December overapplied/underapplied ?
7. What is the amount of Manufacturing overhead overapplied/underapplied?
8. What is the adjusted cost of goods sold?
9. What is gross margin?
10. What is the total prime cost for Job#1?
11. What is the total conversion cost for job #1?
12. What is the total product cost for job#1?
13. What was the period cost incurred for the month of December?  
14. What is the total variable cost incurred for Job #1(assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)?
15. What is the contribution margin for Job #1 (assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)?
16. What would be the actual (not applied) total fixed manufacturing overhead cost incurred for the company for the month if the order in Job #1 is for five tables instead of one table assuming this cost is with in the relevant range?

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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