Accounting Document attached
Quiz 4 has two parts (100 points) Part 1 Job Order Costing John and Sam went to college together, and both majored in computer science. A few years ago, they formed a computer company called Synergy, Inc. Synergy Inc. is a manufacturer of enterprise management systems. Assume that the company has a division that does custom jobs for large clients. Production costs are accounted for using a job cost system. Suppose that at the beginning of the month, raw materials inventory totaled $8,000, manufacturing supplies amounted to $1,800, and two jobs were in process Job 355 with assigned costs of $18,750 and Job 356 with assigned costs of $2,800, and there were no finished goods inventories. There was no under-applied or over-applied manufacturing overhead on the first day of the month. The following information summarized the month’s manufacturing activities: Synergy purchased raw material costing $50,000 on account. Synergy purchased manufacturing supplies costing $9,000. The manager process requisitioned materials for the various jobs in process. The requisitioned material needed to complete Job 356 was $5,200. Synergy started two new jobs and assigned those numbers 357 and 358. The requisitioned direct materials for 357 was $19,000, and 358 was $15,500. Direct labor costs for the month were incurred at a rate of $20.00 per hour. Job 355 needed 600 hours. Job 356 needed 1,600 hours. Job 357 needed 2,100 hours. Job 358 needed 900 hours. Manufacturing supplies used for the month totaled $6,500. Synergy recognized depreciation on factory assets of $5,000. The company incurred miscellaneous manufacturing overhead cost of $22,750 on account. The company applied manufacturing overhead at a rate of $8.00 per direct labor hour. The following jobs were completed in the month: Jobs 355, 356, and 357. The following jobs were delivered to customers: Jobs 355 and 356. Required 1. Prepare in good form the journal entries or T accounts showing the flow of costs through the Work-in-Process, Finished Goods, and Costs of Goods Sold accounts. Please show all accounts used and their ending balances! 2. . Show the job costs details for each job to support the balances in Work-in-Process, Finished Goods, and Costs of Goods Sold accounts. 3. Is the manufacturing overhead over or under applied? Please show the journal entry to close the manufacturing overhead account. 4. Prepare in good form a Statement of Costs of Goods Manufactured for the month. Part 2 Budgeting Josiah is a golf enthusiast. He teaches and plays the game of golf. A few years back, he was able to get in on an excellent business opportunity. He is a part of Improve Your Golf, Inc. They sell two different products that help people improve their golf game. The company needs your help in budgeting. Here is some information available for the month of April Estimated sales Product 1 sales for this month are estimated to be 180,000 units at $12.00 each. Product 2 sales for this month are estimated to be 250,000 units at $6.00 each. Estimated Costs Product 1 estimated costs are $6 per unit. Product 2 estimated costs are $3.00 per unit Desired inventories Product 1- the beginning inventory is 11,000, and the ending inventory is 8,000. Product 2 –the beginning inventory is 5,000, and the ending inventory is 6,000. Other information you will need: The company has their bank accounts at Sun Bank. The beginning cash balance is $500,000 on the first of the month. Sales are on credit and are collected 80% in the current period and the balance in the next period. March sales were $3,200,000, and May sales are estimated to be 3,400,000. Bad debts average 2% of sales. The company purchases most of the golf merchandise that it distributes. Purchases of merchandise are paid 70% in the month of purchase and 30% in the following month. Purchases totaled 1,900,000 in March and are estimated to be 2,000,000 in May. The company has several employees. Employee wages are paid in the current month. Employee expenses for April were $515,000. Overhead expenses are paid in the next month. The accounts payable amount for these expenses from March is $90,000, and for May will be $100,000. April’s overhead expenses are $90,000. Selling and administrative expenses are paid monthly and total $780,000, including $50,000 of depreciation. All unit costs for April are the same as they were in March. Required- Prepare the following in good format: 1. Sales budget in dollars 2. Purchases budget 3. Cash budget 4. Budgeted income statement