Analyzing costs in a job company. On June 1.

Wells Landscaping Company had two jobs in process with the following costs:

In addition, overhead is applied to these jobs at the rate of 100 percent of direct labor costs.
On June 1.

Wells had materials inventory (for example, plants and shrubs) totaling S2.000. During June. Wells purchased S4.000 of materials and had none left in materials inventory' at the end of the month. (However. Wells had some materials in Work-in-Process Inventory' at the end of the month.)

During June. Wells completed both the Taylor Creek and Round Hill jobs and recorded them as Cost of Goods Sold. The Taylor Creek job required no more materials in J une, but it did require SI. 200 of direct labor to complete. The Round Hill job required S400 in indirect materials and $2,000 of direct labor to complete.

Wells started a new job, South Lake, during June and put $1,600 of direct labor costs into this job. Unfortunately, Wells lost the records of materials used on this job but knows all the materials available in June went into either Round Hill or South Lake. The South Lake job is still in Work-in-Process Inventory at the end of the month.
Wells needs to know the total cost of the Taylor Creek and Round Hill jobs, and the cost to date for the South Lake job, for billing purposes. (Otherwise, all the little Wellses at home will go hungry in July.) Provide the cost of direct materials, direct labor, and overhead (at 100 percent of direct labor cost) for the three jobs.

Transcribed Image Text:

Direct Direct Materials Labor Taylor Creek $1.000 $4,000 Round Hill 800 3.200