1 answer

Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as...

Question:

Kims Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential client
Property taxes Storage area rental Truck and delivery cost Advertising and promotion campaign Inspections Telephone and other
Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential clients. An Inventory of materials and equipment is on hand at all times so that work can start as quickly as possible. Special equipment is ordered as required. On May 1, the Materials and Equipment Inventory account had a balance of $38,000. The Work-in-Process Inventory account is maintained to record costs of work not yet complete. There were two such Jobs on May 1 with the following costs. Materials and equipment Direct labor Overhead (applied) Job 27 Highlands Mall $15,675 13,700 4,110 Job 33 Pine Ridge Estates $ 52,700 26,350 7,905 Overhead has been applied at 30 percent of the costs of direct labor. During May, Kim's Asphalt started two new jobs. Additional work was carried out on Jobs 27 and 33, with the latter completed and billed to Pine Ridge Estates. Details on the costs incurred on jobs during May follow. Job Materials and equipment Direct labor (wages payable) 27 33 $3,200 $5,000 $4,800 $3,100 4,700 6,950 6,100 1,800 Other May Events 1. Received $12.700 payment on Job 24 delivered to customer in April. 2. Purchased materials and equipment for $9,600 on account 3. Billed Pine Ridge Estates $132,000 and received payment for $85,000 of that amount 4. Determined that payroll for indirect labor personnel totaled $670 5. Issued supplies and incidental materials for current jobs costing $175. 6. Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation).
Property taxes Storage area rental Truck and delivery cost Advertising and promotion campaign Inspections Telephone and other miscellaneous Equipment depreciation $570 695 340 620 220 345 470 Required: a. Prepare journal entries to record the flow of costs for operations during May. b. Calculate the amount of over- or underapplied overhead for the month. c. Determine inventory balances for Materials and Equipment Inventory and Work-in-process inventory.

Answers

(a)

General Journal

Debit

Credit

1

Cash

$12,700

Accounts receivable

$12,700

2

Material and equipment inventory

$9,600

Accounts payable

$9,600

3

Accounts receivable

$132,000

Sales revenue

$132,000

Cash

$85,000

Accounts receivable

$85,000

4

Manufacturing overhead

$670

Wages payable

$670

5

Manufacturing overhead

$175

Material and equipment inventory

$175

6

Manufacturing overhead ($570+695+340+220+345+470)

$2,640

Selling and administrative cost-(Advertising)

620

Cash ($2,640+620-470)

$2,790

Accumulated depreciation

470

(b).

Actual overhead = $670 (indirect labor)+175(indirect material)+2,640(other manufacturing overhead) = $3,485

Applied overhead = $19,550 (Total direct labor cost for May)*30% = $5,865

Over applied overhead = $2,380

(c).

Material and equipment inventory = $38,000 (Beginning balance)+9,600 (Purchases)-16,100 (Direct material issued)-175 (Indirect material)

Material and equipment inventory = $31,325

Work in process inventory = $120,440 (Job 27+Job 33)+16,100 (Direct material issued)+19,550 (Direct labor cost)+5,865 (Applied overhead)-100,990 (Cost of Job 33 completed ) = $60,965

Working Note:

Cost of Job 33 completed = $86,955 ( Beginning balance)+14,035 (5,000+6,950+6,950*30%) = $100,990

I HOPE IT USEFUL TO YOU IF YOU HAVE ANY DOUBT PLZ COMMENT GIVE ME UP-THUMB. THANKS....

.

Similar Solved Questions

1 answer
The price of shares of Bank of Florida at the end of trading each day for...
The price of shares of Bank of Florida at the end of trading each day for the last year followed the normal distribution. Assume there were 240 trading days in the year. The mean price was $42.00 per share and the standard deviation was $2.25 per share. (Round your answers to 2 decimal places.) a-1....
1 answer
Using the termas provided, label the following Mastrasion of the nephron peritubular capilaries arcuate artery and...
Using the termas provided, label the following Mastrasion of the nephron peritubular capilaries arcuate artery and vein renal corpuscle interlobar artery and vein efferent artericle ascending timb of Henle's loop collecting tbule Bowman's capsale proximal coavoluted tubule juxtaglomeular app...
1 answer
Good examples of business to business (B2B) market in trade industries are firms that buy to...
Good examples of business to business (B2B) market in trade industries are firms that buy to use in their production process. Select one: True False...
1 answer
The temperature of an oven is kept constant at 1050 K. A hole with a diameter...
The temperature of an oven is kept constant at 1050 K. A hole with a diameter of 21.0 mm is drilled in the wall of the oven. How much power is emitted by this hole? (Consider the hole as a black body.) What is the wavelength for which the radiant energy is maximum?...
1 answer
4.2 Based on external readings), which evidence-based strategy to prevent youth violence do you think is...
4.2 Based on external readings), which evidence-based strategy to prevent youth violence do you think is the most feasible to implement, expand and evaluate? Also state which strategy you think is the most challenging. How might you apply or engage with the intervention in your current or future nur...
1 answer
The substitution of a T for an A in the protein coding sequence of the globin...
The substitution of a T for an A in the protein coding sequence of the globin gene introduced a SNP. This SNP changed an amino acid resulting in sickle cell anemia. Unaffected individuals have the DNA sequence GAGGAG, a BseRI restriction enzyme site, in their gene generating two DNA fragments of 2 a...
1 answer
After 77.0 min, 44.0% of a compound has decomposed. What is the half-life of this reaction...
After 77.0 min, 44.0% of a compound has decomposed. What is the half-life of this reaction assuming first-order kinetics?...
1 answer
I am a bit confused about this question and need the help (Project Management). Thanks Use...
I am a bit confused about this question and need the help (Project Management). Thanks Use the case below to answer questions 1 & 2 (Adapted from PMBOK 6) Company A was established 4 years ago. Its founders have recently become concerned about the competitiveness of the firm’s offerings an...
1 answer
Why did World War I require total warfare?
Why did World War I require total warfare?...
1 answer
A rectangular loop of wire 24 cmcm by 72 cmcm is bent into an LL shape,...
A rectangular loop of wire 24 cmcm by 72 cmcm is bent into an LL shape, as shown in the figure. (Figure 1) The magnetic field in the vicinity of the loop has a magnitude of 3.8×10−2 TT and points in a direction 25 ∘∘ below the y axis. The magnetic field has no x component. Fi...
1 answer
Laser region is shown in the figure in the fluid is helium at 20 C and...
laser region is shown in the figure in the fluid is helium at 20 C and I am and it 108 ms and som T-20°C loto 4-10 8mo What is the maximum velocity? Show it on the figure? (5 points) - Is the trud 2-Dor 3-D? Explain your rational. (5 points) c) What is the velocity of the fluid at the wall? (5 p...
1 answer
In the physical goods supply chain, information moves to the left and material to the right....
In the physical goods supply chain, information moves to the left and material to the right. true or false Information moves in both directions in the service chain for mobile workers. true or false Transfer enhances productive capacity by enabling customer self-service. true or false The physical g...
1 answer
How do you graph the number 7 - 5i in the complex plane and find its absolute value?
How do you graph the number 7 - 5i in the complex plane and find its absolute value?...
1 answer
You want to construct a portfolio containing U.S. Treasury bills and two stocks. Its weight in...
You want to construct a portfolio containing U.S. Treasury bills and two stocks. Its weight in T-bills is 20%, in Stock A is 30%, and in Stock B is 50%. If the beta of the Stock A is 1.5 and the beta of the portfolio is 1.0, what does the beta of Stock B have to be? Multiple Choice 0.84 O O 1.10 O 1...
1 answer
8.2.6 Given that Pn(x) = x and Q0(x) = 12ln(1+x1-x) are solutions of Legendre’s differential equation (Table 7.1) co...
8.2.6 Given that Pn(x) = x and Q0(x) = 12ln(1+x1-x) are solutions of Legendre’s differential equation (Table 7.1) corresponding to different eigenvalues. (a) Evaluate their orthogonality integral -11x2ln(1+x1-x)dx . (b) Explain why these two functions are not orthogonal, that is, why the p...
1 answer
Independence. Generally accepted auditing standards require auditors to be independent. Included within this standard are the...
Independence. Generally accepted auditing standards require auditors to be independent. Included within this standard are the concepts of independence in fact and independence in appearance. a. Define independence in fact and independence in appearance. b. What two general types of relationships wou...
1 answer
1.5/2 points 1 Previous Answers OSUniPhys1 15.1.WA.001.Tutornal You have a two-wheel trailer that you pull behind...
1.5/2 points 1 Previous Answers OSUniPhys1 15.1.WA.001.Tutornal You have a two-wheel trailer that you pull behind your ATV. Two children with a combined mass of 64.7 kg hop on board for a ride through the woods and the springs (one for each wheel) each compress by 5.17 cm. When you pull the trailer ...
1 answer
Problem 10.47 Consider the shaded area shown in (Figure 1). Suppose that a 7 in. b...
Problem 10.47 Consider the shaded area shown in (Figure 1). Suppose that a 7 in. b = 4 in. and r = 3 in. Part A Determine the moment of inertia for the shaded area about the y axis. Express your answer to three significant figures and include the appropriate units. Figure 1 of 1 HA ? > 1,- Value ...