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:
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:
3. Incurred January manufacturing payroll:
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:
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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