Question

Racause them was so successful in building customer relationships with the youth segment of model plane market, me to Play Inchas undertaken an expansion project to also make other types of toys starting this year (20201 The current plan is to make a limited production of one how to earn quarter. For example, the first quarter of 2020 had the firm manufacturing a spec edition toy truck, second quarter will be toy motorcycles, third will be toy boats, and fourth will be cars. Tour thend in the Finance Department Sam Matthews secured a loan from a loca provide financing for this production. As part of the loan agreement, the firm was to balances at the end of each month for its inventories. The firm decided to use a job order costing system. The resulting job-order cost sheet for manufacturing 10.000 toy trucks is as follows: partnername me Job Number 124 Direct Materials Date TYPE COSTQTY AMOUNT Jan 4 X $3.00 each 10,000 $30.000 Feb 9 Y $1.00 each 40,000 ach 40,000 $40,000 $40,000 Mar 5 Z $2.00 each 10,000 $20,000 TOTAL Total direct materials Total direct labor Overhead applied (1300 direct labor hours TOTAL Date Started January 4 Date Completed March 15 Direct Labor COST HOURS (Jan) $18.00 200 (Feb) $19.00 100 (Mar) $18.50 1.000 TOTAL $ 90,000 $ 24,000 $12 per hour) $15.600 $129,600 AMOUNT $ 3,600 $ 1.900 $18.500 $24.000 $90,000 All of the materials for the job were purchased on January 2. All 10,000 of the toy trucks were sold to a major retailer on April 10. Sam completely forgot about submitting the required figures to the bank and was contacted today by a loan officer concerning the matter. (Assume today is April 30. Because Sam is so worried about losing his job from the oversight, he does not feel confident about calculating the information. He calls you because he knows he can count on you for help. You realize you must first consider whether these costs will appear on the firm's Balance Sheet or on its Income Statement for each month so far this year. REQUIRED: Prepare a spreadsheet with appropriate INPUT and OUTPUT sections that calculates the FOUR items of Direct Materials Inventory, Work-in-Process Inventory with detail on Direct Material total, Direct Labor total, and Overhead Applied), Finished Goods Inventory (with detail on Direct Material total, Direct Labor total and Overhead Applied), and Cost of Goods Sold for EACH of the following dates: (a) January 31, (b) February 29, (c) March 31, and (d) April 30. IMPORTANT: In-Class Writing Activity Day will be on Bring both (a) your completed Excel spreadsheets AND (b) formula sheets for your Excel spreadsheets and be ready to write about what the numbers mean and some of the related concepts to explain to Board members or Bankers.

required section need answered?

Answer 1

		DIRECT MATERIAL INVENTORY
			January	February	March
	A	Beginning Inventory	$0	$60,000	$20,000
	B	Purchase	$90,000	$0	$0
	C	Direct Materials Used for Production	$30,000	$40,000	$20,000
	D=A+B-C	Ending Inventory	$60,000	$20,000	$0
		WORK IN PROCESS INVENTORY
			January	February	March
	A	Beginning Inventory	$0	$36,000	$79,100
	B	Direct Materials used	$30,000	$40,000	$20,000
	C	Direct labor Cost	$3,600	$1,900	$18,500
	D	Direct Labor hours utilized	200	100	1,000
	E=D*$12	Applied Overhead	$2,400	$1,200	$12,000
	F=B+C+E	Total Manufacturing Cost incurred	$36,000	$43,100	$50,500
	G	Transferred to Finished Goods	$0	$0	$129,600
	F=A+F-G	Ending Work in Process Inventory	$36,000	$79,100	$0
		FINISHED GOODS INVENTORY
			January	February	March
	A	Beginning Inventory	$0	$0	$0
	B	Transferred from Work in Process	$0	$0	$129,600
	C=A+B	Ending Work in Process Inventory	$0	$0	$129,600
		Cost of Goods Sold in April	$129,600
			January,31	February,29	March,31	April,30
	A	Direct Materials Inventory	$60,000	$20,000	$0
	B	Work In Process Inventory(Total)	$36,000	$79,100	$0
	B1	Direct Materials	$30,000	$70,000
	B2	Direct Labor	$3,600	$5,500
	B3	Overhead Applied	$2,400	$3,600
	C	Finished Goods Inventory(Total)	$0	$0	$129,600
	C1	Direct Materials			$90,000
	C2	Direct Labor			$24,000
	C3	Overhead Applied			$15,600
	D	Cost of Goods Sold				$129,600
	E=A+B+C	Total Inventory	$96,000	$99,100	$129,600