Reference no: EM132477649

Sheds, Inc. designs and builds sheds and outbuildings for individual customers. The company uses a job cost system and treats each customer's order as a separate job. At the beginning of January the company had the following raw material inventory: $500 At the beginning of January the company had the following work-in-process inventories: Job 21 $1,000 Job 25 $3,000 During January, the following activities took place:

Point 1. Started jobs 26 and 27.

Point 2. Purchased raw materials in January: $13,000 Requisitioned(or used) the following raw materials to the specific jobs: Job 21 $4,000 Job 25 $1,000 Job 26 $2,000 Job 27 $3,000

Point 3. Incurred January manufacturing payroll: Direct Labor Job 21 $700 Job 25 $2,000 Job 26 $900 Job 27 $1,600 Indirect labor $400

Point 4. Incurred additional manufacturing overhead costs for January: Production equipment rent $700 Manufacturing supplies purchased and used $500 Factory utilities $300

Point 5. Applied manufacturing overhead using a predetermined rate based on predicted annual overhead and predicted annual direct material cost as follows: Predicted Annual Overhead $30,000 Predicted Annual Direct Material cost $150,000

Point 6. Completed jobs 25 and 27 in January.

Point 7. Customer for Job 25 picked up completed job and was billed the following: Job 25 10,000

Point 8. The company had the following period costs that they incurred: Sales commissions $2,000 Administrative salaries $1,000

Required: You need to use cell references to complete Part 1 in your response and calculations.

Question 1. Develop the predetermined overhead rate.

Question 2. Complete the job cost sheets provided below for the month of January: Job 21 Job 25 Job 26 Job 27 Beginning Balance Current costs: Direct materials Direct Labor Applied overhead Total

Question 3. Determine the ending Work-In-Process Inventory at the end of January and provide the Job number(s) still in Work-in-Process at the end of January and the determine total cost of ending work in process for January.

Question 4. Determine the Ending Finished Goods for January and provide the Job number(s) in Finished Goods at the end of January and determine the total cost of ending finished goods for January.

Question 5. Determine the Cost of Goods Sold for January and provide the Job number(s) in Cost of Goods Sold for January and determine the total cost of goods sold for January.

Question 6. Determine the ending raw material balance for January, which you will need when preparing the Statement of Cost of Goods Manufacturing for the month ended.

Question 7. Create a statement of cost of goods manufactured for January below. Use Manufacturing Overhead applied in your statement. Shed Inc. Statement of Cost of Goods Manufactured For Month ending January 31, 20XX Current manufacturing costs: Cost of material placed in production Raw materials, 1/1/XX Purchases Total available Raw materials, 1/31/XX Direct Labor Manufacturing overhead Applied Work-in-process January 1, 20XX Total costs in process Work-in-process January 31, 20XX Cost of goods manufactured

Question 8. Create an Income Statement for January below. The company does not close the over or underapplied overhead until the end of the year, so no adjustment is needed to Cost of Goods Sold. Shed Inc. Income Statement For Month ending January 31, 20XX Sales Cost of goods sold Gross Profit Selling and Administrative expenses Net income

Question 9. Determine the underapplied or overapplied manufacturing for January.

Question 10. Create a Column chart below showing the 3 products that were added to the jobs in January.