You work tor Thunderduck Custom lables Inc. This is the first month of operation

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You work tor Thunderduck Custom lables Inc. This is the first month of operations. The specialty tables. Each table is specially customized for the customer. This month, you have been 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 to develop and manufacture #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. Tabla Top Table Leg Drawer $1,100.00 $200.00 $310.00 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 b. Rent for the factory per month c. Depreciation of factory equipment per month 3,000.00 5600.00 $600.00 4,200.00 Total Estimated manufacturing overhead What is the predetermined manufacturing overhead rate? 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. 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, Finis revenue, Manufacturing overhead, Cost of goods sold, Salaries and wages expense, Advertising expenses, and expense hed Accumulated depreciation, Accounts payle Saaies and wages payable, Sales Raw Materials purchased on account, $11,000 Raw Materials needed for Job #1 were requisitioned from the material e 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: employees that spend 2 hours each. S25 per hour to make the table for Job #1. (After you journalize this into Job #1 Cost Sheet) entry please enter the in Salary for supervisor of the factory $3,500. Administrative Salary S2,000 AI Raw Mate als needed or b #2 were requisitioned rom the material storage for use du ng the month Assume a materials are direct. (After you journalize this entry please enter the information into Job #2 Cost Sheet) Rent for the month of December for the factory building incurred but not paid $800. Advertising costs incurred but not paid for the month was $1,400. Depreciation for the month of December was recorded on equipment was 5750 $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 based on the POHR determined on the "Job Cost Sheet". (After you journalize this entry please enter the information into Job #1 Cost Sheet) Job #1 was completed and transferred to Finished Goods during the month.

Explanation / Answer

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Accounts Title Dr Cr a Raw Material $11,000 Accounts payable $11,000 b Work in process $1,900 Raw Material $1,900 c Worki in process (Job1) (3*2*25) $3,500 Worki in process (Job2) (3*1*25) $2,000 Manufacturing overehad $150 Salaries & wages expenses $75 Salaries & wages Payable $5,725 d Work in process $2,540 Raw Material $2,540 e Manufacturing overehad 600 Accounts payable 600 f Advertsiing expenses 1400 Accounts payable 1400 g Depreciation expenses 600 Manufacturing overehad 150 Accumulated depreciation 750 h Work in process 3150 Manufacturing overehad 3150 i Finsihed Goods 4150 Work in process 4150 see the working in T accounts

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