Description
Open the attached excel file,
The file includes blank templates for Job # Cost Sheer, Job #2 Cost Sheet, General Journal. T-Accounts (General Ledger), Schedule of Cost of Goods Manufactured, Cost of goods sold and Income Statement.
The project includes 8 steps. Complete Step 1 – 8 by entering the appropriate accounting information in your template. Please use your name as the name of the company for the purpose of completing titles in your excel documents (Ex. John Smith, Inc.). After completing step 1 to 8 save your final template using the following name format: ACCT_2302_Project_Yourfirstname_Yourlastname, Example: ACCT_2302_Project_John_Smith.
Record your answers to fill in the blank questions under steps 1, and 8 using the information from your template.
Submit the completed excel file as an attachment
All the 8 steps and questions are also attached in the word docs.
Open the attached excel file “ACCT 2302 Project Excel Templateâ€Â. The file includes blank
templates for General Journal. T-Accounts (General Ledger), Job #1 Cost Sheet, Job #2 Cost
Sheet, Schedule of Cost of Goods Manufactured, Cost of Goods Sold and Income Statement.
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 $1,200.00
Table Leg
Drawer
$250.00
$320.00
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 $3,500.00
b.Rent for the factory per month $700.00
c.Depreciation of factory equipment per month
$600.00
Total Estimated manufacturing overhead $4,800.00
What is the predetermined manufacturing overhead rate?
Step 2
The first order you received was to manufacture a table using a table top and four legs. This is
your Job #1.
Step 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.
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 Raw Materials purchased on account, $12,000.
5-Dec 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)
10-Dec The following employee costs were incurred but not paid during the month:
There are three assembly employees that spend 2 hours each, $30 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 $4,000.Administrative Salary $2,000.
15-Dec 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)
16-Dec Rent for the month of December for the factory building incurred but not paid $700.
17-Dec Advertising costs incurred but not paid for the month was $1,600.
20-Dec Depreciation for the month of December was recorded on equipment was $750 ($150
for equipment used in the factory and the remainder for equipment used in selling and
administrative activities).
22-Dec Manufacturing overhead cost was applied based on direct labor hours to Job #1 based
on the POHR determined on the “Job Cost Sheet”. (After you journalize this entry please enter
the information into Job #1 Cost Sheet)
26-Dec Job #1 was completed and transferred to Finished Goods during the month.
28-DecThe completed table from Job #1 was sold on account to the customer for $17,000
during the month. (Hint: Make sure to account for the cost of the table that was sold using the
cost from the job cost sheet.
31-Dec Direct labor cost incurred but not paid for three employees to start manufacturing Job
#2.
The employees only worked one hour each, three hours total, $30 per hour during the month
and they did not complete their work on the job. (After you journalize this entry please enter the
information into Job #2 Cost Sheet)
31-Dec Manufacturing overhead cost was applied based on direct labor hours to Job #2 based
on the POHR. Only three direct labor hours were worked on Job #2 during the month. (After
you journalize this entry please enter the information into Job #2 Cost Sheet)
31-Dec Any underapplied or overapplied overhead for the month was closed out to Cost of
Goods Sold.
Step 5 Post the journal entries that you recorded on the “General Journal” tab to the “Taccounts” tab. This is the company’s first month of business, so there will not be any beginning
balances. Compute the balance for each T-account after all of the entries have been posted.
Step 6 Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods
Sold on the “Schedule of COGM and COGS” tab for Job #1 and Job #2 that were worked on
during the month by the company. Make sure to follow the format noted in your book (pg. 87).
(Hint: This is the company’s first month of operations and therefore the beginning balances will
be zero.)
Step 7 Prepare an Income Statement for the month using the Traditional Format on the
“Income Statement” tab.
Step 8 Answer the additional questions below
Check Figure: Cost of Goods Manufactured= $4,780, Net operating income=$6,770
What is the ending balance for raw materials?
What is the ending balance for work in process?
What is the ending balance for finished goods?
What is the actual manufacturing overhead cost incurred during December before adjustment?
What is the total applied manufacturing overhead cost during December before adjustment?
What is the unadjusted cost of goods sold?
Was the manufacturing overhead for the month of December overapplied/underapplied ?
What is the amount of Manufacturing overhead overapplied/underapplied?
What is the adjusted cost of goods sold?
What is gross margin?
What is the total prime cost for Job#1?
What is the total conversion cost for job #1?
What is the total product cost for job#1?
What was the period cost incurred for the month of December?
What is the total variable cost incurred for Job #1(assume that all selling and administrative
cost and all manufacturing overhead costs are fixed.)?
What is the contribution margin for Job #1 (assume that all selling and administrative cost and
all manufacturing overhead costs are fixed.)?
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?
Date
General Journal
Description
Debit
Credit
Account Receivables
Accounts Payable
Raw Materials
Salaries and Wages Payable
Work In Process
Finished Goods
Manufacturing Overhead
Accumulated Depreciation
ayable
Sales Revenue
es Payable
Cost of Goods Sold
Salaries and Wages Expense
Advertising Expense
Depreciation Expense
Job Cost Sheet
Job Number
Date Initiated
Item
Date completed
Direct Matarials
Amount
Direct Labor
Hours
Cost Summary
Direct Materials
Direct Labor
Manufacturing Overhead
Total Product Cost
Unit Product Cost
Rate
Manufacturing Overh
Amount
Hours
Direct Materials:
Manufacturing Overhead
Rate
Amount
Job Cost Sheet
Job Number
Date Initiated
Item
Date completed
Direct Matarials
Direct Labor
Amount
Hours
Cost Summary
Direct Materials
Direct Labor
Manufacturing Overhead
Total Product Cost
Unit Product Cost
Rate
Manufacturing O
Amount
Hours
Direct Materials:
Manufacturing Overhead
Rate
Amount
Thunderduck Custom Tables, Inc.
Schedule of cost of goods manufactured
For the month Ended December 31, 20XX
Thunderduck Custom Tables, Inc.
Cost of goods sold
For the month Ended December 31, 20XX
Custom Tables, Inc.
of goods sold
ded December 31, 20XX
Thunderduck Custom Tables, Inc.
Income Statement
For the month Ended December 31, 20XX
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