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6. Determine the ending raw material balance for January, which you will need when preparing the Statement of

Cost of Goods Manufacturing for the month ended.


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: 500

At the beginning of January the company had the following work-in-process inventories:

Job 21

Job 25

During January, the following activities took place:

1. Started jobs 26 and 27.

2. Purchased raw materials in January: 13000

Requisitioned(or used) the following raw materials to the specific jobs:

Job 21

Job 25

Job 26

Job 27

3. Incurred January manufacturing payroll:

Direct Labor

Job 21

Job 25

Job 26

Job 27

Indirect labor

4. Incurred additional manufacturing overhead costs for January:

Production equipment rent -700

Manufacturing supplies purchased and used - 500

Factory utilities - 300

5. Applied manufacturing overhead using a predetermined rate based on predicted annual overhead

 and predicted annual direct material cost as follows:

Predicted Annual Overhead - $30,000

Predicted Annual Direct Material cost - $150,000

6. Completed jobs 25 and 27 in January. 

7. Customer for Job 25 picked up completed job and was billed the following:

Job 25

 

 

 

5. Determine the Cost of Goods Sold for January and provide the Job number(s) in Cost of Goods Sold for January and determine the total cost of goods sold for January.

6. Determine the ending raw material balance for January, which you will need when preparing the Statement of Cost of Goods Manufacturing for the month ended.

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