Question details

Complete the company’s Job Cost Reports using the information provided in the packet
$ 12.00

Individual Project 1

Job Costing – 25 points

Due in class February 15th

 

Blumhardt’s Barbeque Grills builds customized barbeque grills.  All grills goes through two production departments:  Building (BLD) and Painting (PNT).

The company uses a normal, job-order costing system, and overhead is applied using departmental rates.  The rate for BLD is $15 per machine hour (MH) and the rate for PNT is $12.75 per direct labor hour (DLH).  Company policy is to close any over- or underapplied overhead directly to Cost of Goods Sold at the end of each month.

You will receive a packet containing job cost reports and copies of selected source documents for the month of February.  At the beginning of the month, two jobswere already in production (#501 and #502).  During February, two additional jobs were started (#503 and #504).

 

Required:

1.Complete the company’s Job Cost Reports using the information provided in the packet. 

2.Calculate the following amounts for the month of February:

  • Ending Work-in-Process balance
  • Cost of goods manufactured
  • Over-/underapplied overhead
  • Cost of goods sold AFTER adjusting for any over-/underapplied overhead

3.Prepare an income statement for February.  The company’s income tax rate is 35%

4.Answer the following questions:

  • Why would a business choose to use a predetermined (estimated) overhead rate instead of an actual overhead rate?
  • A more accurate method for disposing of over-/underapplied overhead is to prorate it among work-in-process inventories, finished goods inventories and Cost of Goods Sold.  Do you think Blumhardt’s Barbeque Grills is justified in using the direct write-off approach instead?  Why or why not?

5.Turn in the following       

Completed job cost reports

Answers to parts 2, 3, and 4 (must be typed)

All supporting calculations (may be handwritten)

6.Turn in group evaluation (if applicable) – 1 per person.

For each person in your group (including yourself), evaluate participation as follows:

            4 – did at least their fair share

                        3 – did slightly less than their fair share

            2 – did significantly less than their fair share

            1 – meant to participate but never showed up

                        0 – who?

 

BONUS OPPORTUNITY:  5 points for best in class; 10 points for best overall

 

 

 

Blumhardt’s Barbeque Grills:  Job Cost Sheet

 

 

Job #:

501

 

 

 

 

 

 

 

Date Started:

1/20/16

 

 

Description:

35 Grills for Bolmer’sBackyard Grills

 

 

 

 

Date Completed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct Material

Direct Labor

Manufacturing Overhead

 

 

Date

Req#

Amount

Date

Dept

Hrs

Rate

Amount

Date

Dept

Base

Hrs

Rate

Amount

 

 

Jan 21

R1219

$1,250

Jan 29

BLD

120

$13.00

$1,560

Jan 29

BLD

MH

100

$15.00

$1,500

 

 

 

 

 

Jan 29

PNT

80

$18.00

$1,440

Jan 29

PNT

DLH

80

$12.75

$1,020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completed Job Cost:

$

 

 

 

 

 

 

 

 

 

 

 

 

Date Sold:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

 

 

Blumhardt’s Barbeque Grills:  Job Cost Sheet

 

 

Job #:

502

 

 

 

 

 

 

 

Date Started:

1/25/16

 

 

Description:

60 Grills for Hudson’s Hamburgers

 

 

 

 

Date Completed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct Material

Direct Labor

Manufacturing Overhead

 

 

Date

Req#

Amount

Date

Dept

Hrs

Rate

Amount

Date

Dept

Base

Hrs

Rate

Amount

 

 

Jan 25

R1220

$2,750

Jan 29

BLD

70

$13.00

$910

Jan 29

BLD

MH

80

$15.00

$1,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completed Job Cost:

$

 

 

 

 

 

 

 

 

 

 

 

 

Date Sold:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

 

 

 

 

Blumhardt’s Barbeque Grills:  Job Cost Sheet

 

 

Job #:

503

 

 

 

 

 

 

 

Date Started:

 

 

 

Description:

 

 

 

 

 

Date Completed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct Material

Direct Labor

Manufacturing Overhead

 

 

Date

Req#

Amount

Date

Dept

Hrs

Rate

Amount

Date

Dept

Base

Hrs

Rate

Amount

 

 

 

 

$

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completed Job Cost:

$

 

 

 

 

 

 

 

 

 

 

 

 

Date Sold:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blumhardt’s Barbeque Grills:  Job Cost Sheet

 

 

Job #:

504

 

 

 

 

 

 

 

Date Started:

 

 

 

Description:

 

 

 

 

 

Date Completed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct Material

Direct Labor

Manufacturing Overhead

 

 

Date

Req#

Amount

Date

Dept

Hrs

Rate

Amount

Date

Dept

Base

Hrs

Rate

Amount

 

 

 

 

$

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completed Job Cost:

$

 

 

 

 

 

 

 

 

 

 

 

 

Date Sold:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials Requisition

#R1221

 

 

 

 

 

 

 

Date

Description

Amount

 

 

2/01/16

Metal – for Job 502

$3,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blumhardt’s Barbeque Grills

 

4822

 

 

 

 

 

DATE

2/2/16

 

 

 

 

 

 

 

 

 

 

 

 

PAY TO THE

ORDER OF

Rao’s Repairs Inc

$

3,500

 

 

 

 

 

 

 

 

 

 

 

XYZ Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMO

Factory Maintenance

 

Yang Xu, CPA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

Production Order

 

 

 

 

 

 

 

Date

Job #

Description

 

 

2/5/16

503

120 Grills for Krattli’sKoolers INC

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials Requisition

#R1222

 

 

 

 

 

 

 

Date

Description

Amount

 

 

2/5/16

Metal – for Job 503

$6,450

 

 

 

 

 

 

 Selected Source Documents for February

 

 

 

 

 

 

 

Materials Requisition

#R1223

 

 

 

 

 

 

 

Date

Description

Amount

 

 

2/8/16

Paint – for Job 502

$1,090

 

 

 

 

 

 

 

 

 

 

 

Bi-Weekly Payroll Summary

 

 

Pay Period Ending:2/12/2016

 

 

 

 

 

 

Dept BLD:     Job #501    180 hrs @ $13.00/hr

 

 

                         Job #502    140 hrs @ $13.00/hr

 

 

                       Job #503     370 hrs @ $13.00/hr

 

 

Dept PNT:      Job #501    240 hrs @ $18.00/hr

 

 

Job #502280 hrs @ $18.00/hr

 

 

Idle time

$137

 

 

Plant supervisor

$2,500

 

 

Administrative salaries

$1,270

 

 

 

 

 

 

 

 

 

 

 

BLD Machine Hour Summary

 

 

Period Ending:2/12/2016

 

 

 

 

 

 

 

Job               

Machine Hours

 

 

 

#501

190

 

 

 

#502

#503

160

200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials Requisition

#R1224

 

 

 

 

 

 

 

Date

Description

Amount

 

 

2/15/16

Metal – for Job 503

$3,930

 

 

 

 

 

 

 

 

 

 

 

 

Inventory Move Authorization

 

 

 

 

 

 

 

Date

Job #

Move To

 

 

2/16/16

501

Finished Goods

 

 

2/16/16

502

Finished Goods

 

 

 

 

 

 

 

 

Materials Requisition

#R1225

 

 

 

 

 

 

 

Date

Description

Amount

 

 

2/17/16

Various Production Supplies

$5,366

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blumhardt’s Barbeque Grills

 

 

 

Lawrence, KS · 785.555.1234

Invoice 152

 

 

 

 

 

 

2/17/2016

 

 

 

 

 

 

 

 

 

Sold To:Bolmer’s Backyard Grills

 

 

 

 

 

 

 

 

 

 

 

Description

 

 

Total Amt.

 

 

Job #501: 35 Barbeque Grills

 

$28,000

 

 

 

 

 

 

 

 

Total

 

$28,000

 

 

 

 

 

 

 

 

Materials Requisition

#R1226

 

 

 

 

 

 

 

Date

Description

Amount

 

 

2/18/16

Various Production Supplies

$1,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials Requisition

#R1227

 

 

 

 

 

 

 

Date

Description

Amount

 

 

2/19/16

Paint – for Job 503

$4,580

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blumhardt’s Barbeque Grills

 

4823

 

 

 

 

 

DATE

2/22/2016

 

 

 

 

 

 

 

 

 

 

 

 

PAY TO THE

ORDER OF

Westar Energy

$

8,000

 

 

 

 

 

 

 

 

 

 

 

XYZ Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMO

Factory: $6,000

Admin: $2,000

 

Yang Xu, CPA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

Bi-Weekly Payroll Summary

 

 

Pay Period Ending:2/26/2016

 

 

 

 

 

 

Dept BLD: Job #503        350 hrs @ $13.00/hr

 

 

                         Job #504   60 hrs @ $13.00/hr

 

 

 

Dept PNT:      Job #502   120  hrs @ $18.00/hr

                       Job #503    240 hrs @ $18.00/hr

                       Job #504      40 hrs @ $18.00/hr

 

 

 

Idle time

$86

 

 

Plant supervisor

$2,500

 

 

Administrative salaries

$1,270

 

 

 

 

 

 

 

 

 

 

 

Inventory Move Authorization

 

 

 

 

 

 

 

Date

Job #

Move To

 

 

2/24/16

503

Finished Goods

 

 

 

 

 

 

 

 

 

 

 

 

BLD Machine Hour Summary

 

 

Period Ending:2/26/16

 

 

 

 

 

 

 

Job               

Machine Hours

 

 

 

#503

220

 

 

 

#504

 20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blumhardt’s Barbeque Grills

 

 

 

Lawrence, KS · 785.555.1234

Invoice 153

 

 

 

 

 

 

2/27/2016

 

 

 

 

 

 

 

 

 

Sold To:Hudson’s Hamburgers

 

 

 

 

 

 

 

 

 

 

 

Description

 

 

Total Amt.

 

 

Job #502: 60 Grills

 

$48,000

 

 

 

 

 

 

 

 

Total

 

$48,000

 

2/28/16Recorded depreciation on manufacturing equipment   $2,500

 

 

 

 

 

 

 

 

 

 

Blumhardt’s Barbeque Grills

 

4824

 

 

 

 

 

DATE

2/28/16

 

 

 

 

 

 

 

 

 

 

 

 

PAY TO THE

ORDER OF

Conklin Property Management

$

5,700

 

 

 

 

 

 

 

 

 

 

 

XYZ Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMO

Factory Rent: $3,000

Admin Office Rent: $2,700

Yang Xu, CPA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

Production Order

 

 

 

 

 

 

 

Date

Job #

Description

 

 

2/22/16

504

15 Grills for Davis’ Dawgs LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials Requisition

#R1228

 

 

 

 

 

 

 

Date

Description

Amount

 

 

2/26/16

Metal – For Job 504

$850

 

 

 

 

 

 

Selected Source Documents 

Available solutions