Determining Cost of Job 114 for Producing Black & White Handbags

School: Case Western Reserve University - Course: ACCT 102 - Subject: Accounting

Custom Fabric Venturesis a small company that produces fabric-based wardrobe accesso handbags, scarves, and headbands) and home accessories (such as placemats, pillows, and treatments).The company keeps a limited number of popular items in stock, but primari custom orders.Customers are able to choose from a wide selection of styles, sizes, and fa of product.Most of the company's customers are small boutiques, home décor shops, an decorators who serve clientele with discerning tastes.As a result, customers expect high- The sales staff ofCustom Fabric Ventureshas just received the following order: See Excel worksheet: Customer Order Form Due to its popularity, the Black and White Handbag (BW14293) is normally a stock item. handbag is currently out of stock.Rather than producing only enough units to fill Katie's o management would like to produce a job (Job 114) that is large enough to fill Katie's order stock.The fabric used for this job can be stacked four layers deep for cutting, while still m quality and precision of the cut.Therefore, the company is able to realize some economie producing the handbags inmultiples of 4.Management would like to produce enough un have a minimum of 30 and a maximum of 35 handbags left in stockafterKatie's order has Your primary task is to determine the cost of producing Job 114 so that you can calculate on the sale to Katie's Boutique.As part of this process, you will be required to schedule purchase any raw materials that aren't currently in stock, requisition materials for the job, job cost record.You will also be asked to consider relevant management and accountin record the transactions related to this job in the company's accounting records. The following step-by-step requirements will guide you through the entire job costing proc documents you will encounter in this case normallyinterface with each other electronica transfer data in real-time, eliminate tedious calculations, and prevent errors.However, I'll tranfer data, as needed, in order to learn the underlying process. Requirement 1: Before the year began, Custom Fabric Ventures estimated the following costs for the year: See Excel worksheet: Estimated Annual Costs 1a. First, fill in the missing costs in the worksheet. 2a. Then, calculate the company's predetermined manufacturing overhead rate, assuming the com labor hoursas its allocation base.Record your answer in the worksheet in the space provided.

Requirement 2: To realizemaximum efficiencyand meetmanagement's desired level of stock, how many Black & W should be produced in Job 114? (HINT:See initial background information about the business again) Requirement 3: The production engineers have given you the materials requirements foreachBlack & White hand no efficienciesin materialscan be achieved by producing more than one unit per batch. Complete the Bill of Materials for Job #114 .Be sure to include number of units being produced as the total quantity needed of each direct material.