Question: part 1 information to use in completing is below and...
Part 1: Information to use in completing is below and
the requirements follow where you will answer the questions.
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:
At the beginning of January the company had the following work-in-process inventories:
Job 21 $3,000
Job 25 $2,000
During January, the following activities took place:
1. Started jobs 26 and 27.
2. Purchased raw materials in January: $12,000
Requisitioned(or used) the following raw materials to the specific jobs:
Job 21 $2,000
Job 25 $4,000
Job 26 $1,000
Job 27 $3,000
3. Incurred January manufacturing payroll:
Job 21 $750
Job 25 $2,000
Job 26 $900
Job 27 $1,500
Indirect labor $500
4. Incurred additional manufacturing overhead costs for January:
Production equipment rent
Manufacturing supplies purchased and used
5. Applied manufacturing overhead using a predetermined rate based on predicted annual overhead
and predicted annual direct material cost as follows:
Predicted Annual Overhead $25,000
Predicted Annual Direct Material cost $100,000
6. Completed jobs 26 and 27.
7. Customer for Job 27 picked up completed job and was billed the following:
Job 27 11,000
8. The company had the following period costs that they incurred:
Sales commissions $2,000
Administrative salaries $1,000
Prepare a statement of cost of goods manufactured for
January below. Use Manufacturing Overhead applied in your
Current manufacturing costs:
Cost of material placed in production
Raw materials, 1/1/XX
Raw materials, 1/31/XX
Manufacturing overhead Applied
Work-in-process January 1, 20XX
Total costs in process
Work-in-process January 31, 20XX
Cost of goods manufactured