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Part 1: Information to use in completing is below and the requirements follow where you will answer the questions. 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: At the beginning of January the company had the following work-in-process inventories: Job 21 $3,000 Job 25 $2,000 During January, the following activities took place: 1. Started jobs 26 and 27. 2. Purchased raw materials in January: $12,000 Requisitioned(or used) the following raw materials to the specific jobs: Job 21 $2,000 Job 25 $4,000 Job 26 $1,000 Job 27 $3,000 3. Incurred January manufacturing payroll: Direct Labor Job 21 $750 Job 25 $2,000 Job 26 $900 Job 27 $1,500 Indirect labor $500 4. Incurred additional manufacturing overhead costs for January: Production equipment rent Manufacturing supplies purchased and used Factory utilities 5. Applied manufacturing overhead using a predetermined rate based on predicted annual overhead and predicted annual direct material cost as follows: Predicted Annual Overhead $25,000 Predicted Annual Direct Material cost $100,000 6. Completed jobs 26 and 27. 7. Customer for Job 27 picked up completed job and was billed the following: Job 27 11,000 8. The company had the following period costs that they incurred: Sales commissions $2,000 Administrative salaries $1,000

Prepare a statement of cost of goods manufactured for January below. Use Manufacturing Overhead applied in your statement. Current manufacturing costs: Cost of material placed in production Raw materials, 1/1/XX Purchases Total available Raw materials, 1/31/XX Direct Labor Manufacturing overhead Applied Work-in-process January 1, 20XX Total costs in process Work-in-process January 31, 20XX Cost of goods manufactured

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