Individual Project 1
Job Costing – 25 points
Due in class February 15th
Blumhardt’s Barbeque Grills builds customized barbeque grills. All grills go
... [Show More] es 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 jobs were 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-inprocess 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 Description: Date Started: Date Req# Date Completed: 35 Grills for Bolmer’s Backyard Grills Direct Material Direct Labor
Dept Hrs Rate $1,250 Jan 29 BLD 120 $13.00 Jan 29 Jan 21 R1219 Amount Date 1/20/16 PNT 80 $18.00 Manufacturing Overhead
Amount Date Dept Base Hrs Rate Amount $1,560 Jan 29 BLD MH 100 $15.00 $1,500 $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 Description: Date Started:
60 Grills for Hudson’s Hamburgers Direct Material
Date Req# Jan 25 R1220 Amount Date Completed: Direct Labor
Date $2,750 Jan 29 1/25/16 Dept Hrs Rate BLD 70 $13.00 Manufacturing Overhead
Amount Date $910 Jan 29 Dept Base Hrs Rate BLD MH 80 Amount $15.00 Completed Job Cost: $
Date Sold: $1,200 Blumhardt’s Barbeque Grills: Job Cost Sheet
Job #: 503 Date Started: Description: Date Completed: Direct Material
Date Req# Amount Direct Labor
Date Dept Hrs Rate $ Manufacturing Overhead
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
Date Req# Amount
$ Direct Labor
Date Dept Hrs Rate Manufacturing Overhead
Amount Date Dept Base Hrs $ Rate Amount
$ Completed Job Cost: $
Date Sold: Selected Source Documents for February
Materials Requisition
Date
2/01/16
Date
2/19/16 #R1221 Description
Materials Requisition
Metal – for Job 502
Description
Paint – for Job 503 Selected
February Amount
#R1227
$3,010
Amount
$4,580
4822 Blumhardt’s Barbeque Grills PAY TO THE
ORDER OF DATE Rao’s Repairs Inc PAY TO THE
ORDER OF
XYZ Bank 2/2/16 DATE Blumhardt’s Barbeque Grills 2/22/2016
3,500
$ Westar Energy XYZ Bank
MEMO Factory
MEMO Maintenance 4823 $ 8,000 Bi-Weekly Payroll Summary
Pay Period Ending: 2/26/2016
Bi-Weekly Payroll Summary
Pay Period Ending: 2/12/2016
Dept BLD: Job #503 350 hrs @ $13.00/hr
60
Dept BLD: Job #501 180Job #504
hrs @ $13.00/hrhrs @ $13.00/hr Dept PNT: Job #502
280 hrs @ $18.00/hr
Idle time
$86
Idle time
$137
Plant supervisor
$2,500
Plant supervisor
$2,500
Administrative salaries $1,270
Administrative salaries $1,270 Yang Xu, CPA 4824
Blumhardt’s Barbeque Grills
Job
Machine Hours
2/28/16
DATE
#501
190
BLD Machine Hour Summary
#502 Ending: 2/26/16
160
PAY TO THE
Job #
Description
ConklinPeriod Management
Property
5,700
$
ORDER OF
Production Order
#503
200
503
120 Grills for Krattli’s Koolers INC
Job
Machine Hours
XYZ Bank
Job #
Description
#503
220
504
15 Grills for Davis’ Dawgs
Yang Xu, CPA
MEMO Factory Rent: $3,000
#504
20
Admin Office Rent: $2,700 Requisition
LLC
Materials
#R1224 Materials Requisition #R1222 Date Inventory Move Authorization Amount
Description
2/5/16
Metal#– for Job Move To $6,450
503
Date
Job
2/24/16 503 Date
2/15/16 Finished Goods Materials Requisition
#R1223
Materials Requisition
#R1228
Date
Description
Amount
Date
Description
Amount
2/8/16
Paint – for Job 502
$1,090
2/26/1
Metal – For Job 504
$850
6
2/28/16 Recorded depreciation on manufacturing equipment $2,500 2/16/16
2/16/16 501
502 Finished Goods
Total
Finished Goods Description
Various Production
Supplies Amount
$5,366 Invoice 152
2/17/2016 Sold To: Bolmer’s Backyard Grills
Description
Job #501: 35 Barbeque Grills
Total Total Amt.
$28,000
$28,000 Materials Requisition
Date
Invoice 153
2/18/16
2/27/2016 Sold To: Hudson’s Hamburgers
Inventory Move Authorization
Description
Job #502: 60 Grills To
Date
Job #
Move #R1225 Lawrence, KS · 785.555.1234 Description
Amount
Metal – for Job 503
$3,930
Blumhardt’s Barbeque Grills
Lawrence, KS · 785.555.1234 Materials Requisition Blumhardt’s Barbeque Grills BLD Machine Hour Summary
Period Ending: 2/12/2016 Yang Xu, CPA Factory: $6,000
Admin: $2,000
Production Order Date
2/5/16
Date
2/22/16 Job #502 140 hrs @ $13.00/hr
Dept PNT: Job @ $13.00/hr
Job #503 370 hrs#502 120 hrs @ $18.00/hr
Date
Job #503 240 hrs @ $18.00/hr
2/17/16
Job #501 240 Job @ $18.00/hr @ $18.00/hr
hrs #504
40 hrs Source Documents for Total Amt.
$48,000
$48,000 #R1226 Description
Various Production
Supplies Amount
$1,000 [Show Less]