You will be completing the inventory records, material requisition forms and job cost sheets for Ford Manufacturing for the month of September.
1. Your submission should include this entire packet, in either
a. Microsoft Word file (.docx) where the necessary information has been typed
b. Adobe PDF file. You can print the packet and hand write the necessary information. Then scan the entire packet and submit as one PDF file (do not submit individual pages).
You are required to complete the materials records on pages 3 and 4, material requisitions on pages 5-7 and job cost sheets on pages 11-13. On pages 14-15 you should complete the T-accounts.
Your submission file should be named LastName_Project 2_Packet.docx or LastName_Project 2_Packet.pdf
2. Your submission should also include in Excel the company’s
a. Schedule of Cost of Goods Manufactured
b. Income Statement
The Excel financial statements should be formatted in a professional manner suitable for distribution internally within the company. All totals or calculations should use cell reference formulas.
Your submission file should be named LastName_Project 2 Statements.xlsx
Ford Manufacturing cost estimates for the year 2024:
Direct labor $350,000 (based on 14,000 direct labor hours at $25 per hour)
Factory supervisor salaries 220,000
Administrative salaries 180,000
Rent for manufacturing facility 39,900
Rent for office building 12,000
Advertising expenses 20,000
Depreciation - office 4,000
Depreciation - factory equipment 18,000
Inventory records as of August 31, 2024 have been provided. (You will be completing information for September on these pages). There were no jobs in process as of August 31, 2024.
There was no beginning finished goods inventory on August 31, 2024.
Ford uses the first-in, first-out inventory method for recording raw material inventory.
During the month of September, the purchases of raw materials were
September 4: 500 pounds of R19 at $2 per pound.
September 10: 1000 feet of material L17 at $5.60 per foot.
September 18: 400 pounds of R19 at $2.40 per pound.
September 22: 700 pounds of R19 at $2.70 per pound.
September 25: 1000 feet of material L17 at $6.00 per foot.
Complete the material requisition forms for the following use of inventory:
September 2: Job 450, 420 pounds of R19 and 700 feet of L17 (Use M56)
September 20: Job 451, 350 pounds of R19 and 600 feet of L17 (Use M57)
September 24: Job 452, 900 pounds of R19 and 590 feet of L17 (Use M58)
Job 450 was finished on September 19th and delivered to customer for sales price $18,000
Job 451 was finished on September 28th and delivered to customer for sales price $15,000
Job 452 was still in process as of September 30, 2024.
September was a relatively slow month as demand for the Ford Manufacturing product is off season. Peak season is January - July. Ford maintains only three factory employees during the off season who work on a part-time basis as needed.
Labor records are provided daily. When entering labor hours on the job cost sheets, you can enter the necessary information by date.
Ford Manufacturing applies overhead to jobs on the basis of direct labor hours.
Other actual costs for September 2024:
Factory supervisor salaries 1,500
Administrative salaries 10,000
Rent for manufacturing facility 1,000
Rent for office building 1,200
Advertising expenses 2,000
Depreciation - office 300
Depreciation - factory equipment 800
Management believes any over/under applied overhead is insignificant.
