49. (Comprehensive) In May 2002, Aztec Construction Company was the successful bidder on a contract to build a pedestrian overpass in Flagstaff, Arizona.

The firm utilizes a job order costing system, and this job was assigned Job

#515. The contract price for the overpass was $450,000. The owners of Aztec Construction agreed to a completion date of December 15, 2002, for the contract.

The firm’s engineering and cost accounting departments estimated the following costs for completion of the overpass: $120,000 for direct material,

$135,000 for direct labor, and $81,000 for overhead.

The firm began work on the overpass in August. During August, direct material cost assigned to Job #515 was $30,900 and direct labor cost associated with Job #515 was $47,520. The firm uses a predetermined overhead rate of 60 percent of direct labor cost. Aztec Construction also worked on several other jobs during August and incurred the following costs:

Direct labor (including Job #515) $252,000 Indirect labor 27,900 Administrative salaries and wages 19,800 Depreciation on construction equipment 13,200 Depreciation on office equipment 3,900 Client entertainment (on accounts payable) 5,550 Advertising for firm (paid in cash) 3,300 Indirect material (from supplies inventory) 9,300 Miscellaneous expenses (design related; to be paid in the following month) 5,100 Accrued utilities (for office, $900; for construction, $2,700) 3,600 During August, Aztec Construction completed several jobs that had been in process before the beginning of the month. These completed jobs generated $312,000 of revenues for the company. The related job cost sheets showed costs associated with those jobs of $214,500. At the beginning of August, Aztec Construction had Work in Process Inventory of $135,900.

a. Prepare a job order cost sheet for Job #515, including all job details, and post the appropriate cost information for August.

b. Prepare journal entries for the above information.

c. Prepare a Schedule of Cost of Goods Manufactured for August for Aztec Construction Company.

d. Assuming the company pays income tax at a 40 percent rate, prepare an income statement for August.