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There are three problems this week. Click the tabs at the bottom of the spreadsheet to go to problems 2 and 3. Echo Sports Company produces home basketball goal systems consisting of a stand, backboard, rim, and net. The company has sufficient orders and capacity to produce 800 goal systems per month. Manufacturing costs and other costs are shown below:

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There are three problems this week. Click the tabs at the bottom of the spreadsheet to go to problems 2 and 3.
Echo Sports Company produces home basketball goal systems consisting of a stand, backboard, rim, and net. The company has sufficient orders
and capacity to produce 800 goal systems per month. Manufacturing costs and other costs are shown below:
Administrative salary             2,400.00
Depreciation on office equipment                 400.00
Depreciation on production equipment             1,800.00
Electric and other factory utilities             1,400.00
Factory supervisor salary             2,000.00
Fiberglass backboards purchased from another manufacturer           30,400.00
Insurance on factory building and contents                 600.00
Maintenance costs on factory equipment             1,200.00
Nets and rims purchased from another manufacturer             6,400.00
Rent on factory building             2,000.00
Sales commissions             1,600.00
Steel pipe for stand fabrication           14,920.00
Supplies for administrative office                 600.00
Wages for production workers           14,720.00
           80,440.00
Enter each manufacturing cost in the appropriate column. Direct  Direct  Manufacturing 
Leave blank if it does not fit in any column. Materials  Labor  Overhead 
Administrative salary
Depreciation on office equipment
Depreciation on production equipment
Electric and other factory utilities
Factory supervisor salary
Fiberglass backboards purchased from another manufacturer
Insurance on factory building and contents
Maintenance costs on factory equipment
Nets and rims purchased from another manufacturer
Rent on factory building
Sales commissions
Steel pipe for stand fabrication
Supplies for administrative office
Wages for production workers
    Totals                          –                                –                              –  
 Job Costing 
 Elite Custom Cabinetry Company produces custom cabinets ordered to exact measure based on CAD drawings provided by kitchen remodeling firms. 
 As of June 1, there was one order in production (job 5-3), and two new jobs were started in June (jobs 6-1 and 6-2). 
 Job 5-3 had incurred costs as follows prior to the month of June: direct material, $4,600; direct labor, $6,550; overhead, $3,400. 
 There were no finished goods, because orders ship out upon completion. Raw material inventory was $18,600 as of June 1. 
 The following events occurred during June: 
    1.  Purchased additional raw materials of $20,000. 
    2.  Incurred direct labor hours of 640 hours at a rate of $24.00 during the month of June. 
    3.  Incurred total manufacturing overhead costs of $18,400 during the month of June. 
    4.  Assigned Direct materials and direct labor hours to jobs as follows: 
 Actual 
 Materials  Hours 
 Job 5-3               2,300                   112
 Job 6-1               8,700                   320
 Job 6-2               5,420                   208
 Totals             16,420                   640
    5.  The company uses direct labor hours to assign overhead to individual jobs, and the predetermined 
         overhead rate is $28.00 per hour, based on the budget of 600 labor hours per month. 
    6.  Job 5-3 and 6-1 are completed and shipped in the month of June. Job 6-2 is in progress at month end. 
 A.  Calculate the completed cost of jobs 5-3 and 6-1. 
 B.  Calculate the cost of work in process (job 6-2). 
 C.  Calculate over or under applied overhead for hours worked and rate per hour. 
 D.  Calculate the actual overhead rate per hour. 
Process Job Costing and Equivalent Units of Production
Bay Manufacturing produces paint. The company has two processes: mixing and packaging.
The ingredients for the paint are mixed in large batches and then transferred to the packaging
department, where one-gallon cans are filled, capped, labeled, and boxed.
There was no work in process on February 1. The materials are all brought to the packaging job up front
and charged to the job. Nothing is transferred to finished goods until the entire job is complete. The
materials costs include the packaging, material, and the cost transferred from the mixing department.
On February 2,  15,000 gallons (job 2-1) were transferred into the packaging department from the
mixing department and completed on February 19.
The costs incurred to complete job 2-1 in the packaging department are as follows:
   Materials                       56,250
   Labor                       11,250
   Overhead (applied based on direct labor hours)                         7,500
On February 20, another 20,000 gallons (job 2-2) were transferred into the packaging department.
Job 2-2 was 50% complete as to labor at the end of the month.
The costs incurred (unit cost unchanged from job 2-1) to complete job 2-2 in the packaging
department are as follows:
   Materials                       75,000
   Labor                       15,000
   Overhead (applied based on direct labor hours)                       10,000
INSTRUCTIONS:
1.  Compute the physical units of production.
2.  Compute the cost per unit to complete packaging for labor, materials, overhead, and total.
3.  Compute equivalent units and cost of work in process as of the end of February.
4.  Record journal entries for:
     a.  the movement of materials from materials inventory to each job
     b.  the allocation of payroll to each job
     c.  the application of overhead to each job
     d.  the movement of work in process to finished goods
 
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