Manor Painting is a commercial interior and exterior painting contractor specializing in commercial buildings. An inventory...
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Manor Painting is a commercial interior and exterior painting contractor specializing in commercial buildings. An inventory of materials and equipment is on hand at all times, so work can start as quickly as possible. Special equipment is ordered as required. On August 1, the Materials Inventory account had a balance of $54,000. The Work-in-Process Inventory account is maintained to record costs of work not yet complete. There were two such jobs on August 1 with the following costs: Materials and equipment Direct labor (wages payable) Other August Events Materials and equipment. Direct labor Overhead (applied) Overhead has been applied at 40 percent of the costs of direct labor using an annual rate. During August, Manor Painting started two new jobs. Additional work was carried out on Jobs 84 and 87. Job 87 was completed and billed to the customer. Details on the costs incurred on jobs during August follow: Job 84 $ 23,100 20,300 8,120 Property taxes Storage area rental Truck and delivery cost Advertising and promotion campaign Inspections Telephone and other miscellaneous Equipment depreciation Job 87 $ 78,800 39,400 15,768 Job 84 $ 4,500 7,800 Job 87 $ 7,200 10,100 1. Purchased materials and equipment for $14,100. 2. Billed $195,000 to the customer for Job 87 and received payment for $115,000 of that amount. 3. Received $18.600 payment on Job 82 delivered to customer in July. 4. Determined that payroll for indirect labor personnel totaled $2,100. 5. Issued supplies and incidental materials for current jobs costing $750. 6. Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation): $ 980 1,050 1,630 1,200 Job 88 $ 6,988 8,900 900 680 2,729 Job 90 $ 4,400 2,400 Journal entry worksheet B Record charges to Work-in-Process. Note: Enter debits before credits. Transaction 07 General Journal Work in Process-Materials and Equipment Overhead Applied E Record entry Clear entry G H Debit Credit View general journal Journal entry worksheet A B D < Record transfer of Job 87. Note: Enter debits before credits. Transaction 08 Record entry E F General Journal Clear entry G H Debit 1 Credit View general journal Manor Painting is a commercial interior and exterior painting contractor specializing in commercial buildings. An inventory of materials and equipment is on hand at all times, so work can start as quickly as possible. Special equipment is ordered as required. On August 1, the Materials Inventory account had a balance of $54,000. The Work-in-Process Inventory account is maintained to record costs of work not yet complete. There were two such jobs on August 1 with the following costs: Materials and equipment Direct labor (wages payable) Other August Events Materials and equipment. Direct labor Overhead (applied) Overhead has been applied at 40 percent of the costs of direct labor using an annual rate. During August, Manor Painting started two new jobs. Additional work was carried out on Jobs 84 and 87. Job 87 was completed and billed to the customer. Details on the costs incurred on jobs during August follow: Job 84 $ 23,100 20,300 8,120 Property taxes Storage area rental Truck and delivery cost Advertising and promotion campaign Inspections Telephone and other miscellaneous Equipment depreciation Job 87 $ 78,800 39,400 15,768 Job 84 $ 4,500 7,800 Job 87 $ 7,200 10,100 1. Purchased materials and equipment for $14,100. 2. Billed $195,000 to the customer for Job 87 and received payment for $115,000 of that amount. 3. Received $18.600 payment on Job 82 delivered to customer in July. 4. Determined that payroll for indirect labor personnel totaled $2,100. 5. Issued supplies and incidental materials for current jobs costing $750. 6. Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation): $ 980 1,050 1,630 1,200 Job 88 $ 6,988 8,900 900 680 2,729 Job 90 $ 4,400 2,400 Journal entry worksheet B Record charges to Work-in-Process. Note: Enter debits before credits. Transaction 07 General Journal Work in Process-Materials and Equipment Overhead Applied E Record entry Clear entry G H Debit Credit View general journal Journal entry worksheet A B D < Record transfer of Job 87. Note: Enter debits before credits. Transaction 08 Record entry E F General Journal Clear entry G H Debit 1 Credit View general journal
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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