Answer Happy

2 4 1 Part 1: Information to use in completing is below and the requirements follow where you will answer the questions. 3 Glass Company makes glass orders based on the customer specifications, so the company uses job costing to track costs. 5 1. The company uses direct labor hours as the cost driver for manufacturing overhead application. 6 The company estimated the following manufacturing overhead costs for the year: $770,000 7 The company estimated the following usage of direct-labor hours for the year: 275,000 8 $20,000 $80,000 4,000 5,000 1,400 $260,000 $15,000 $10,000 $200,000 9 2. Beginning Work-in-process, March 1 (Job 55) 10 11 3. Beginning Finished Goods, March 1 (Job 57) 12 13 2. Labor Information for March: 14 Direct-labor hours: 15 Job 55 16 Job 58 17 Job 59 18 Labor costs in factory: 19 Direct-labor wages 20 Indirect-labor wages 21 22 3. Material Information for March: 23 Raw Materials, Inventory, March 1 24 Purchase or raw material 25 Direct materials requisitioned: 26 Job 55 27 Job 58 28 Job 59 29 30 4. Other costs incurred in March: 31 Factory Utilities 32 Sales offices Utilities 33 Administrative offices Utilities 34 Factory equipment repair and maintenance costs 35 Depreciation on factory equipment 36 Manufacturing supplies purchased and used 37 38 5. During March the following jobs were completed : 39 Job 55 Job 58 41 6. During March the following jobs were sold for the following amounts: 42 Job 55 43 Job 57 44 $70,000 $76,000 $50,000 $5,000 $1,000 $2,000 $4,000 $3,000 $5,000 40 $250,000 $100,000
Required:You need to use cell references to provide answers and calculations. There are 9 questions in Part 1. 1. Develop the predetermined overhead rate. 2. Complete the job cost sheets provided below for the month of March: Job 55 Job 58 Job 59 Beginning Balance Current costs: : Direct materials Direct Labor Applied overhead Total Hint: You need to calculate the hourly rate and then compute direct labor cost per job. 3. Determine the ending Work-In-Process Inventory at the end of March and provide the Job number of the job(s) still in Work-in-Process at the end of March and the determine total cost of ending work in process for March 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 4. Determine the ending Finished Goods for March and provide the Job number(s) of the job(s) in Finished Goods at the end of March and determine the total cost of ending finished goods for March. 5. Determine the Cost of Goods Sold for March and provide the Job number of the Job(s) in Cost of Goods Sold for March and determine the total cost of goods sold for March. 6. Prepare a statement of cost of goods manufactured for March below. Use Manufacturing Overhead applied in your statement. You need to prepare in good form. Please see Exhibit 18.6. Glass Company Statement of Cost of Goods Manufactured For Month ending March 31, 20XX 76
7. Prepare an Income Statement for March below. The company does not close the over or underapplied overhead until the end of the year, so no adjustment is needed to Cost of Goods Sold. You need to prepare in good form. Please see Exhibit 18.6. Glass Company Income Statement For Month ending March 31, 20XX 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 8. Determine the dollar amount and the underapplied or overapplied manufacturing for March. Provide your calculations. 113 9. Prepare a Pie chart below showing the three product costs that were added to the job cost sheets in March.