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ACCT 2101 Lecture Notes - Lecture 2: Intelligent Dance Music, Finished Good, Indian Railways

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salmoncrow381
26 Oct 2016
School
LSU
Department
Accounting
Course
ACCT 2101
Professor
juliechenier

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Document Summary

Job order costing: method used to track cost components (dmu, dl, moh) Definitions: cost accounting systems involve the measuring, recording, and reporting of product costs, process cost system costs are accumulated and assigned to job after a period of time. The product is usually of a like kind nature. Usually computes an average unit cost: job order cost system costs are accumulated and assigned to each job individually. Unique products are costed out when the job is completed: job cost sheet a form used to record the costs chargeable to a specific job and determine the total and unit cost of the completed job. Inventory (asset acct) cost portion spent to sold make all. Cost of goods sold (expense acct) portion sold is expensed. Direct/raw materials: gathered from materials requisitions forms, those that list the quantity and cost of direct materials used on a specific job. xx xx purchase(1)

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Related Questions

pleas help me ASAP

Remnant Carpet Company sells and installs commercial carpeting for office buildings. Remnant Carpet Company uses a A type of cost accounting system that provides for a separate record of the cost of each particular quantity of product that passes through the factory.job order cost system. When a prospective customer asks for a price quote on a job, the estimated cost data are inserted on an unnumbered An account in the work in process subsidiary ledger in which the costs charged to a particular job order are recorded.job cost sheet. If the offer is accepted, a number is assigned to the job, and the costs incurred are recorded in the usual manner on the job cost sheet. After the job is completed, reasons for the variances between the estimated and actual costs are noted on the sheet. The data are then available to management in evaluating the efficiency of operations and in preparing quotes on future jobs. On October 1, Remnant Carpet Company gave Jackson Consulting an estimate of $2,436 to carpet the consulting firm’s newly leased office. The estimate was based on the following data:

Estimated direct materials:
30 meters at $30 per meter $ 900
Estimated direct labor:
16 hours at $30 per hour 480
Estimated factory overhead (75% of direct labor cost) 360
Total estimated costs $1,740
Markup (40% of production costs) 696
Total estimate $2,436

On October 3, Jackson Consulting signed a purchase contract, and the delivery and installation were completed on October 10.

The related The form or electronic transmission used by a manufacturing department to authorize materials issuances from the storeroom.materials requisitions and The form on which the amount of time spent by each employee and the labor cost incurred for each individual job, or for factory overhead, are recorded.time tickets are summarized as follows:

Materials Requisition No. Description Amount
112 15 meters at $30 $450
114 19 meters at $30 570
Time Ticket No. Description Amount
H10 8 hours at $30 $240
H11 12 hours at $30 360

Required:

Enter amounts as positive numbers.

1. Complete that portion of the job order cost sheet that would be prepared when the estimate is given to the customer.

2. Record the costs incurred, and complete the job order cost sheet.

JOB ORDER COST SHEET
Customer Jackson Consulting Date October 1
Date wanted October 10
Date completed October 10
Job. No.
ESTIMATE
Direct Materials Direct Labor Summary
Amount Amount Amount
30 Meters at $30 16 Hours at $30 Direct Materials
Direct Labor
Factory Overhead
Total Total Total cost
ACTUAL
Direct Materials Direct Labor Summary
Mat. Req. No. Description Amount Time Ticket No. Description Amount Item Amount
112 15 Meters at $30 H10 8 Hours at $30 Direct Materials
Direct Labor
114 19 Meters at $30 H11 12 Hours at $30 Factory Overhead
Total Total Total Cost

What is the best explanation for the variances between actual costs and estimated costs. (For this purpose, assume that the additional meters of material used in the job were spoiled, the factory overhead rate has proven to be satisfactory, and an inexperienced employee performed the work.)

a.)The direct materials cost exceeded the estimate by $120 because 4 meters of materials were spoiled. The direct labor cost exceeded the estimate by $120 because an additional 4 hours of labor were used by an inexperienced employee. The factory overhead cost exceeded the estimate because an additional $90 of factory overhead was allocated because of the increase in direct labor.

b.)Management didn't provide enough direction to complete tasks on budget.

c.)The direct materials cost exceeded the estimate by $75 because 3 meters of materials were spoiled.

d.) The direct labor cost exceeded the estimate by $120 because an additional 4 hours of labor were used by an inexperienced employee.

And can you all please help me do the Job cost sheet 1, job cost sheet 2, general journal, to accounts ledger,
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 $1,000.00
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 rate? [POHR]
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, $10,000.
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, $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.
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 $500.
17-Dec Advertising costs incurred but not paid for the month was $1,200.
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-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.)
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, $20 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 "T-accounts" 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= $3,520, Net operating income=$6,730
What is the ending balance for raw materials? [EndingRM]
What is the ending balance for work in process? [EndingWIP]
What is the ending balance for finished goods? [EndingFG]
What is the actual manufacturing overhead cost incurred during December before adjustment? [ActualMOH]
What is the total applied manufacturing overhead cost during December before adjustment? [AppliedMOH]
What is the unadjusted cost of goods sold? [UnadjustedCGS]
Was the manufacturing overhead for the month of December overapplied/underapplied ? [overorunderMOH]
What is the amount of Manufacturing overhead overapplied/underapplied? [overorunderappliedMOH]
What is the adjusted cost of goods sold? [AdjustedCGS]
What is gross margin? [Grossmargin]
What is the total prime cost for Job#1? [primecost]
What is the total conversion cost for job #1? [conversioncost]
What is the total product cost for job#1? [productcost]
What was the period cost incurred for the month of December? [periodcost]
What is the total variable cost incurred for Job #1(assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)? [Variablecost]
What is the contribution margin for Job #1 (assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)? [contributionmarginofjob1]
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?

Question 1

I want answers for the questions that are in bold and italic letter.
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 $1,000.00
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 rate? [POHR]
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, $10,000.
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, $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.
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 $500.
17-Dec Advertising costs incurred but not paid for the month was $1,200.
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-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.)
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, $20 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 "T-accounts" 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= $3,520, Net operating income=$6,730
What is the ending balance for raw materials? [EndingRM]
What is the ending balance for work in process? [EndingWIP]
What is the ending balance for finished goods? [EndingFG]
What is the actual manufacturing overhead cost incurred during December before adjustment? [ActualMOH]
What is the total applied manufacturing overhead cost during December before adjustment? [AppliedMOH]
What is the unadjusted cost of goods sold? [UnadjustedCGS]
Was the manufacturing overhead for the month of December overapplied/underapplied ? [overorunderMOH]
What is the amount of Manufacturing overhead overapplied/underapplied? [overorunderappliedMOH]
What is the adjusted cost of goods sold? [AdjustedCGS]
What is gross margin? [Grossmargin]
What is the total prime cost for Job#1? [primecost]
What is the total conversion cost for job #1? [conversioncost]
What is the total product cost for job#1? [productcost]
What was the period cost incurred for the month of December? [periodcost]
What is the total variable cost incurred for Job #1(assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)? [Variablecost]
What is the contribution margin for Job #1 (assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)? [contributionmarginofjob1]
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?