Reference no: EM132476695
Question 1: 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.
- 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
Job 25
During January, the following activities took place:
1. Started jobs 26 and 27.
2. Purchased raw materials in January: 13000
Requisitioned(or used) the following raw materials to the specific jobs:
Job 21
Job 25
Job 26
Job 27
3. Incurred January manufacturing payroll:
Direct Labor
Job 21
Job 25
Job 26
Job 27
Indirect labor
4. Incurred additional manufacturing overhead costs for January:
Production equipment rent -700
Manufacturing supplies purchased and used - 500
Factory utilities - 300
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
6. Completed jobs 25 and 27 in January.
7. Customer for Job 25 picked up completed job and was billed the following:
Job 25
Question 2: 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