(Comprehensive;job cost sheet) The Northern Plains Construction Company builds bridges. For the months of October and November 1997, the firm worked ex¬ clusively on a bridge spanning the Niobrara River in northern Nebraska. The firm is organized into two departments. The Precast Department builds struc¬ tural elements of the bridges in temporary plants located near the construction sites. The Construction Department operates at the bridge site and assembles the precast structural elements. Estimated costs for the Niobrara River Bridge for the Precast Department were $150,000 for direct labor, $310,500 for direct material, and $110,000 for overhead. For the Construction Department, esti¬ mated costs for the Niobrara River Bridge were $160,000 for direct labor, $50,000 for direct material, and $160,000 for overhead. Overhead is applied on the last day of each month. Overhead application rates for the Precast and Con¬ struction Departments are $18 per machine hour and 100 percent of direct labor cost, respectively.

TRANSACTIONS FOR NOVEMBER Nov. 1 Additional structural elements were transferred from the Precast De¬ partment to the construction site. The Construction Department in¬ curred a cash cost of $5,000 to rent a crane.
Nov. 4 $200,000 of material was issued to the Precast Department. Of this amount, $165,000 was considered direct.
Nov. 8 Rent of $4,000 was paid in cash for the temporary site occupied by the Precast Department.
Nov. 15 $85,000 of material was issued to the Construction Department. Of this amount, $40,000 was considered direct.
Nov. 18 Additional structural elements were transferred from the Precast De¬ partment to the construction site.
Nov. 24 The final batch of structural elements were transferred from the Pre¬ cast Department to the construction site.
Nov. 29 The bridge was completed.
Nov. 30 The company paid final bills for the month in the Precast Department:
utilities $15,000; direct labor, $115,000; insurance, $9,350; and super¬ vision and other indirect labor costs, $14,500. Depreciation was re¬ corded, $15,200. The company also paid bills for the Construction Department: utilities, $4,900; direct labor, $134,300; indirect labor, $15,200; and insurance, $5,400. Depreciation was recorded on equip¬ ment, $18,350.
Nov. 30 Overhead was applied in each department. The Precast Department recorded 3,950 machine hours in November.
Nov. 30 The company billed the state of Nebraska for the completed bridge at the contract price, $1,550,000.

a. Prepare all necessary journal entries for the preceding transactions. For pur¬ poses of this problem, it is not necessary to transfer direct material and direct labor from one department into the other.

b. Post all entries to T-accounts.

c. Prepare a job order cost sheet, which includes estimated costs, for the con¬ struction of the bridge.LO1

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TRANSACTIONS FOR OCTOBER Oct. 1 $150,000 of material was purchased (on account) for the Precast De- partment to begin building structural elements. All of the material is- sued to production, $130,000, was considered direct material. Oct. 5 Utilities were installed at the bridge site at a total cost of $15,000.