Please answer bottom 3 questions only! Work in Process, Finished Goods, Cost of
ID: 2602255 • Letter: P
Question
Please answer bottom 3 questions only! Work in Process, Finished Goods, Cost of Goods Sold.
Bramble Wings, Inc. manufactures airplanes for use in stunt shows. Bramble's factory is highly automated, using the latest in robotic technology. To keep costs low, the company employs as few factory workers as possible. Since each plane has different features (such as its shape, weight, and color), Bramble uses a job order costing system to accumulate product costs At the end of 2016, Bramble's accountants developed the following expectations for 2017 based on the marketing department's sales forecast: Budgeted overhead cost Estimated machine hours Estimated direct labor hours Estimated direct materials cost $1,101,000 46,000 10,000 $1,510,000 Bramble's inventory count, completed on December 31, 2016, revealed the following ending inventory balances: Raw Materials Inventory Work in Process Inventory$627,000 Finished Goods Invento $249,000 $2,200,000 The company's 2017 payroll data revealed the following actual payroll costs for the year: Number Employe Rate Annual Salary Total Hours Worked per Wage per mployee Employee Job Title per Hour Employ President and CEO $228,000 $178,000 ice president and CFO Factory manager Assistant factory manager Machine operator Security guard, factory Forklift operator Corporate secretary Janitor, factory $40,900 $31,300 $20,500 $36,200 $14.5 2,250 2,000 2,150 $7.5 $6 The following information was taken from Bramble's Schedule of Plant Assets. All assets are depreciated using the straight-line method Pu Salvage Value Usefu Plant Asset Factory building Price $4,000,000 dministrative office Factory equipment $150,000 20 Year $125,00030 Year 12 Year $650,000 $2,000,000 20,000 Other miscellaneous costs for 2017 all paid in cash included:Explanation / Answer
Bramble Wings Inc. Bottom 3 questions T-Accounts (Amounts in $) Raw Materials Inventory Debit Credit Balance opening 24900 Accounts Payable (Purchases) 1948000 Work in Process 1860000 Balance (Closing) 3832900 3832900 3832900 Work in process Inventory Balance opening 62700 Direct materialss (85%) 1581000 Indirect materials 279000 Manufacturing Overhead Based on Direct Material 1581000 Finished Goods Inventory 3450000 Closing Balance 53700 3503700 3503700 Finished Goods Inventory Balance opening 2200000 Work in process Inventory 3450000 Cost of Goods Sold 3650000 Balance Closing 2000000 5650000 5650000 Manufacturing Overhead Salaries and Wages Expense 442200 Salaried factory worker costs 113200 Hourly labour costs 163125 Accumulated Depreciation 357500 Cash (FactoryInsurance & Factory Utilities 46700 Accumulated Depreciation 17500 Work in Process 1581000 Over-applied 440775 1581000 1581000 Depreciation Expense Accumulated Depreciation 17500 Sales Revenue Accounts Receivable 6570000 Acccounts Receivable Sales Revenue 6570000 Office Supplies Cash 4200 Office Utiliies Cash 5100 Cost of Goods Sold Finished Goods Inventory 3650000 Accounts Payable Raw Materials Inventory 1948000