Assignment Instructions and Requirements
This assignment must be done individually. You must do and submit your own work. However, you may discuss it with anyone else in the class (but no one else). Do not submit identical work with a classmate, or you may be charged with academic dishonesty and will receive a zero for the assignment.
The assignment must be submitted by the due date in accordance with all published requirements. Grading will be based on adherence to instructions, accuracy and completeness of responses, proper writing following standard conventions of English, professionalism of presentation and organization, and compliance with requirements described in the APP Overview and Submission Requirements Overview documents. Questions are always welcome and should be directed to the course instructor as soon as possible.
This APP must be done in Excel. It should be submitted in one file with two sheets, named:
- Problem 1
- Problem 2
Problem 1:
Die Company manufactures cutting dies for the shoe industry. Each set of dies is custom designed to a customer’s templates. During the first week of May, six orders were received from customers. They were assigned job numbers 1005 to 1010. The following transactions occurred during the first week of May:
- Smith Die purchased steel on account from Eastern City Steel costing $5,500. The steel is the major type of material used in manufacturing the dies.
- The company received and paid for supplies (indirect materials) from Mallard Supply costing $2,400.
Material requisitions indicated that materials were issued to the factory floor as follows:
Job No. Direct Materials Indirect Materials
1005 $ 650
1006 $ 850
1007 $1,550
1008 $ 650
1009 $ 450
1010 $ 350
Totals $4,500 $1,000
The labor time ticket summary reflected the following costs for the week:
Job No. Direct Labor Indirect Labor
1005 $1,600
1006 $2,000
1007 $3,300
1008 $1,400
1009 $ 900
1010 $ 700
Totals $9,900 $6,500
- Overhead was applied to all jobs in process at 180 percent of direct labor cost.
- Jobs 1005, 1006, 1007, and 1008 were completed and transferred to finished goods.
- Jobs 1009 and 1010 were still in process at the end of the week.
- Jobs 1005, 1006, 1007, and 1008 were shipped to customers and billed at 150 percent of total job cost.
Continued on next page.
Required:
- Calculate the total cost of each job. Show all items and calculations. Set it up as a table with the Job numbers across the from left to right as the top of columns and the different manufacturing costs on the left in different rows, i.e.:
| Job 1005 | Job 1006 | Etc. | |
| Direct materials | $ xxx | ||
| Etc. | |||
| Etc. | |||
| Total cost per Job |
- Prepare journal entries to record the above information. Use May 7 as the date for each journal entry. Skip a row after each complete entry. Show all calculations. For example:
May 7 Raw materials inventory xxx
Accounts payable xxx
May 7 Second entry xxx
Second entry xxx
- Calculate the ending balance of Work-in-Process Inventory. Show the calculation.
Problem 2:
a) Information for Jersey Metalworks as of December 31, 2020 follows. Use this information to prepare the requested reports in good form, with a heading, underlines, and dollar signs. Show all calculations.
- The company’s Schedule of Cost of Goods Manufactured for the year ended December 31, 2020.
- The company’s income statement for the year ended December 31, 2020, reporting separate categories for selling expenses and for general & administrative expenses.
| Administrative salaries expense | $ 135,000 |
| Depreciation expense–Factory equipment | 52,400 |
| Depreciation expense–Delivery vehicles | 36,200 |
| Depreciation expense–Office equipment | 24,800 |
| Advertising expense | 22,350 |
| Direct labor | 268,000 |
| Factory supplies use | 12,000 |
| Income tax expense | 91,500 |
| Indirect labor | 35,000 |
| Indirect material | 24,000 |
| Factory insurance | 15,500 |
| Factory utilities | 14,000 |
| Factory maintenance | 7,500 |
| Inventories: | |
| Raw materials inventory, January 1, 2020 | 32,000 |
| Raw materials inventory, December 31, 2020 | 28,000 |
| Work in Process inventory, January 1, 2020 | 33,780 |
| Work in Process inventory, December 31, 2020 | 37,460 |
| Finished goods inventory, January 1, 2020 | 56,970 |
| Finished goods inventory, December 31, 2020 | 62,000 |
| Raw materials purchases | 325,000 |
| Rent expense–Factory | 50,000 |
| Rent expense–Office space | 24,000 |
| Rent expense–Selling Space | 24,000 |
| Sales salaries expense | 97,500 |
| Sales, net of discounts | 1,423,000 |
Make sure to follow all requirements of the checklist.
