Question

*****Before you start the problem make sure you multiply the table leg price by four because the table has four legs so the work in process inventory and raw materials for 5-Dec will be $6400.... (Table top=2600)+(Table leg price x 4)+(Drawer)=6400. Make sure to keep in mind the table has four legs.

****** I don't need step 1 i need steps 2,3,4,5,6,7,8

Step 1 You work for Thunderduck Custom Tables Inc. This is the first month of operations. The company designs and manufactures specialty tables. Each table is specially customized for the customer. This month, you have been asked to develop and manufacture two new tables for customers. You will design and build the tables. This is a no nail, no screw, and no glue manufacturing (no indirect materials used). You will be keeping track of the costs incurred to manufacture the tables using Job #1 Cost Sheet and Job #2 Cost Sheet. The cost of the direct materials that can be used to manufacture the table are as follows. These cost are on a per unit basis. Table Top $2,600.00 Table Leg $950.00 Drawer $460.00 The company uses a job order costing system and applies manufacturing overhead to jobs based on direct labor hours. The company estimates that there will be 12 direct labor hours worked during the month. The estimated manufacturing overhead cost for the month is: a. Factory supervisor salary per month $3,000.00 Rent for the factory per month $1,200.00 Depreciation of factory equipment per month $600.00 Total Estimated manufacturing overhead $4,800.00 b. What is the predetermined manufacturing overhead rate? $400 Step 2 Step 3 The first order you received was to manufacture a table using a table top and four legs. This is your job #1. The customer that has ordered Job #2, wants a table that is the same as Job #1, but wants to also add a drawer to the table. Step 4 The following is a list of transactions that need to be recorded for the company for activity in the month of December. Record those in the "General Journal" tab of the excel file using the proper format. Please use the following accounts: Accounts Receivables, Raw materials, Work in process, Finished goods, Accumulated depreciation, Accounts payable, Salaries and wages payable, Sales revenue, Manufacturing overhead, Cost of goods sold, Salaries and wages expense, Advertising expenses, and Depreciation expense. 1-Dec 5-Dec 10-Dec Raw Materials purchased on account, $26,000. All Raw Materials needed for Job #1 were requisitioned from the material storage for use during the month. Assume all materials are direct. (After you journalize this entry please enter the information into Job #1 Cost Sheet) The following employee costs were incurred but not paid during the month: There are three assembly employees that spend 2 hours each, $20 per hour to make the table for Job #1. (After you journalize this entry please enter the information into Job #1 Cost Sheet) Salary for supervisor of the factory 53,500. Administrative Salary $2,000. All Raw Materials needed for Job #2 were requisitioned from the material storage for use during the month. Assume all materials are direct. (After you journalize this entry please enter the information into Job #2 Cost Sheet) 15-Dec

Answer 1

2.

The first order you received was to manufacture a table using a table top and four legs. This is your Job #1 :-

Direct materials

   Table Top                                       2600

    Table Leg                                      950                                                       3550

Direct Labour   2 hours* 3 employees= 6 hours *$20 per hour 120

Manufacturing Overhead 400*6Hours 2400

Total 6070

3.

The customer that has ordered Job #2, wants a table that is the same as Job #1, but wants to also add a drawer to the table. :

Direct materials

   Table Top                                       2600

    Table Leg                                      950

     Drawer                                          460 4010

Direct Labour   1 hours* 3 employees= 3 hours *$20 per hour 60

Manufacturing Overhead   400*3Hours                                                           1200

Total                                                                                                                 5270

4.JOURNAL ENTRIES

1.Dec 5 10 15 16 17 20 22 26 28 28 31 31 31

Raw Materials A/c Dr To Accounts payable A/c (Being Raw materials purchased on account) Work in Process A/c Dr   To Raw Materials A/c (Being Raw materials issued for use in Job #1) Work in Process A/c Dr Manufacturing Overheads A/c Dr Salaries and Wages Expense A/c Dr   To Salaries and wages payable A/c (Being employee cost incurred) Work in Process A/c Dr To Raw Materials A/c (Being Raw materials issued for use in Job #2) Manufacturing Overheads A/c Dr To Rent Payable A/c (Being Rent for the factory building incurred ) Advertising Expenses A/c   Dr To Advertising Expenses Payable A/c (Being Advertising Expenses incurred) Manufacturing Overheads A/c Depreciation expense A/c   To Accumulated depreciation A/c (Being depreciation charged on factory and office equipments) Work in Process A/c Dr To Manufacturing Overheads A/c (Being Manufacturing Overheads charged to job #1 @ $400 per direct labour) Finished Goods To Work in Process A/c (Being job #1 completed) Cost of goods sold To Finished Goods A/c (Being goods sold transferred) Account Receivable   To Sales Revenue A/c (Being goods sold on account) Work in Process A/c To Salaries and wages payable A/c (Being direct labor cost incurred) Work in Process To Manufacturing Overheads A/c   (Being Manufacturing Overheads charged to job #2 @ $400 per direct labour) Cost of goods sold To Manufacturing Overheads A/c   (Being underapplied overheads charged)

26000 3550 120 3500 2000 4010 1200 1400 150 600 2400 6070 6070 31000 60 1200 1250

26000 3550 5620 4010 1200 1400 750 2400 6070 6070 31000 60 1200 1250