Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold and Income Statement;

this ie the jouranl entries

Pre-determined manufacturing overhead rate = Total estimated manufacturing overheads / Estimated direct labor hours = = $3600/12 hours = $300 per direct labor hour

Step 2:

Cost Sheet
	Job # 1
Direct materials $
Table top	2000
Legs ($650 x 4)	2600
Drawer	0	4600
Direct labor cost @ $20 per hour	(3x2x$30)	180
Manufacturing overheads $	(3x2x$300)	1800
Total manufacturing cost $		6580

Step 3:

Cost Sheet
	Job # 2
Direct materials $
Table top	2000
Legs ($650 x 4)	2600
Drawer	400	5000
Direct labor cost @ $20 per hour	(3 x 1 x $30)	90
Manufacturing overheads $	(3 x 1 x $300)	900
Total manufacturing cost $		5990

Step 4:

Date	Account Titles and Explanation	Debit	Credit
01-Dec	Raw Materials	20000
	Accounts Payable		20000
	(To record raw materials purchased on account)
05-Dec	Work in process - Job # 1	4600
	Raw Materials		4600
	(To record raw materials requisitioned for Job # 1)
10-Dec	Work in process - Job # 1 (3 x 2 hours x $30)	180
	Salaries and Wages payable		180
	(To record direct labor cost incurred)
10-Dec	Manufacturing overhead	3000
	Salaries and Wages payable		3000
	(To record Factory Supervisor salary incurred)
10-Dec	Salaries and Wages expense	2000
	Salaries and Wages payable		2000
	(To record administrative salary incurred)
15-Dec	Work in process - Job # 2	5000
	Raw Materials		5000
	(To record raw materials requisitioned for Job # 2)
16-Dec	Manufacturing overhead	500
	Accounts Payable		500
	(To record rent for factory building payable)
17-Dec	Advertising expense	1400
	Accounts Payable		1400
	(To record advertising expense payable)
20-Dec	Manufacturing overhead (factory equip.)	150
	Depreciation expense (S&A equip.)	600
	Accumulated Depreciation		750
	(To record depreciation expense)
22-Dec	Work in process - Job # 1 (2 x 3 hour x $300)	1800
	Manufacturing overhead		1800
	(To record manufacturing OH applied to Job # 1)
26-Dec	Finished goods	6580
	Work in process - Job # 1		6580
	(To record cost of Job # 1 completed and transferred to FG)
28-Dec	Accounts Receivable	25000
	Sales Revenue		25000
	(To record sale on account)
28-Dec	Cost of goods sold	6580
	Finished goods		6580
	(To record cost of sales)
	Sale of Job # 1
31-Dec	Work in process - Job # 2 (3 x 1 hour x $30)	90
	Salaries and Wages payable		90
	(To record direct labor cost incurred)
31-Dec	Work in process - Job # 2 (3 x 1 hour x $300)	900
	Manufacturing overhead		900
	(To record manufacturing OH applied to Job # 2)
31-Dec	Cost of goods sold	950
	Manufacturing overhead		950
	(To close underapplied overheads)

answering these questions :

What is the ending balance for raw materials?
	1. What is the ending balance for work in process?
	2. What is the ending balance for finished goods?
	3. What is the actual manufacturing overhead cost incurred during December before adjustment?
	4. What is the total applied manufacturing overhead cost during December before adjustment?
	5. What is the unadjusted cost of goods sold?
	6. Was the manufacturing overhead for the month of December overapplied/underapplied ?
	7. What is the amount of Manufacturing overhead overapplied/underapplied?
	8. What is the adjusted cost of goods sold?
	9. What is gross margin?
	10. What is the total prime cost for Job#1?
	11. What is the total conversion cost for job #1?
	12. What is the total product cost for job#1?
	13. What was the period cost incurred for the month of December?
	14. What is the total variable cost incurred for Job #1(assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)?
	15. What is the contribution margin for Job #1 (assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)?
	16. What would be the actual (not applied) total fixed manufacturing overhead cost incurred for the company for the month if the order in Job #1 is for five tables instead of one table assuming this cost is with in the relevant range?