January 15Assign Job 76 to Cold Refrigeration for the purchase of a refrigeration system.The start date will be January 16. The completion date will be no later than February 28. The estimated direct material is $9,175.00. The estimated indirect material is $1,860.00. The estimated direct labor is $15,600.00. The contract amount is $45,800.00. A deposit of$10,000.00 was provided by Cold Refrigeration in signing the contract. The deposit is unearned revenue. Half of the contract will be billed upon 50% completion with the deposit applied against that billing with the remaining amount due immediately. A quarter of the contract will be billed upon 75% completion of the contract with the amount due immediately.The remaining amount of the contract is to be billed when the job is 100% complete and ispayable within 30 days of the billing.

January 28Apply from direct materials requisition $4,600.00 of direct materials. Apply from indirect materials requisition $950.00 of indirect materials. Apply $8,000.00 (from time cards)of direct labor and factory overhead to Job 76, completing 50% of the job. Factory overheadis based on 25% of direct labor cost. Transfer the partially completed job from DirectMaterial and Indirect Material to WIP. When making the journal entry for applying directlabor, debit WIP for the gross pay and credit FWT Payable and FICA Tax Payable for theappropriate amounts with the net pay going to Salaries Payable. Set up the accountsreceivable and bill Cold Refrigeration for 50% of the contract on account, applying the initial$10,000.00 deposit against the billing.

January 29Received a check from Cold Refrigeration in the amount of $12,900.00 on account. Prepare account receivable ledger , Please show calculation.

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To prepare the accounts receivable ledger and show the calculation we need to keep track of the tran... View the full answer