32041568

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 $1,000.00
Table Leg $ 150.00
Drawer $ 300.00
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 $ 2,500.00
b. Rent for the factory per month $500.00
c. Depreciation of factory equipment per month $600.00
Total Estimated manufacturing overhead $ 3,600.00
What is the predetermined manufacturing overhead

Blank 1
rate?
The first order you received was to manufacture a table using a table top and four
Step 2
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.
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
Step 4 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, $10,000.
All Raw Materials needed for Job #1 were requisitioned from the material storage for
5-Dec 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, $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 $3,000.
Administrative Salary $2,000.
All Raw Materials needed for Job #2 were requisitioned from the material storage for
15-Dec use during the month. Assume all materials are direct. (After you journalize this
16-Dec Rent for the month of December for the factory building incurred but not paid $500.
17-Dec Advertising costs incurred but not paid for the month was $1,200.
Depreciation for the month of December was recorded on equipment was $750
20-Dec ($150 for equipment used in the factory and the remainder for equipment used in
selling and administrative activities).
Manufacturing overhead cost was applied based on direct labor hours to Job #1
22-Dec based on the POHR determined on the "Job Cost Sheet". (After you journalize this
26-Dec Job #1 was completed and transferred to Finished Goods during the month.
28-Dec The completed table from Job #1 was sold on account to the customer for $15,000
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.)
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, $20 per hour
31-Dec
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)
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
31-Dec
month. (After you journalize this entry please enter the information into Job #2 Cost
Sheet)
Any underapplied or overapplied overhead for the month was closed out to Cost of
31-Dec
Goods Sold.
Post the journal entries that you recorded on the "General Journal" tab to the "T-
accounts" tab. This is the company's first month of business, so there will not be
Step 5
any beginning balances. Compute the balance for each T-account after all of the
entries have been posted.
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
Step 6 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.)
Prepare an Income Statement for the month using the Traditional Format on the
Step 7
"Income Statement" tab.

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You work for Thunderduck Custom Tables Inc. This is the first month of operations.

Table Top $1,000.00

Table Leg $ 150.00

The estimated manufacturing overhead cost for the month

a. Factory supervisor salary per month $ 2,500.00

b. Rent for the factory per month $500.00

c. Depreciation of factory equipment per month $600.00

Total Estimated manufacturing overhead $ 3,600.00

What is the predetermined manufacturing overhead

1-Dec Raw Materials purchased on account, $10,000.

Salary for supervisor of the factory $3,000.

Administrative Salary $2,000.

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

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