(a) Answer the following questions.
(1) What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job?
(2) What is the predetermined manufacturing overhead rate?
(3) What are the total cost and the unit cost of the completed job?
(b) Prepare the entry to record the completion of the job.Job Cost Sheet
JOB NO. 469
ITEM White Lion Cages FOR Tesla Company Quantity 2,000 Date Requested 7/2
Date Completed 7/31
Date Direct Materials Direct Labor Manufacturing
15 440 528
22 380 456
Cost of completed job:
Direct materials ————————–
Direct labor ————————–
Manufacturing overhead Total cost ————————–
Unit cost ————————–
May 1 inventories-finished goods $12,600, work in process $14,700, and raw materials$8,200.
(a) Prepare a condensed cost of goods manufactured schedule.
(b) Prepare an income statement for May through gross profit.
(c) Indicate the balance sheet presentation of the manufacturing inventories at May 31, 2005.
3.The Sanding Department of Han Furniture Company has the following production and manufacturing cost data for April 2005.
Production: 12,000 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 40% complete as to conversion costs.
Manufacturing costs: Materials $36,000; labor $30,000; overhead $37,320. Instructions
Prepare a production cost report. There is no beginning work in process.
An analysis of the accounts shows the following.
1. The equipment depreciates $250 per month.
2. One-third of the unearned rent was earned during the quarter.
3. Interest of $500 is accrued on the notes payable.
4. Supplies on hand total $850.
5. Insurance expires at the rate of $300 per month.
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense; Insurance Expense; Interest Payable; and Supplies Expense. (Omit explanations.)