P20-2A Plantation Construction, Inc. is a home builder in the Southeast. Plantation uses a perpetual inventory system and a job cost system in which each house is a job. Because it constructs houses, the company uses accounts titled Construction Wages. Construction Overhead, and Supervisory Salaries (for indirect labor). The following events occurred during August:

a. Purchased materials on account, $375.600.

b. Incurred construction wages of $189,200. Requisitioned direct materials and used direct labor in construction: House 302 House 303. House 304 House 305 Direct Materials Direct Labor $38.600 $25,300 49,100 17.400 47.400 32.000 63.900 33,700

c. Depreciation of construction equipment, $5,800.

d. Other overhead costs incurred on houses 302-305: Indirect labor Equipment rentals paid in cash Liability insurance expired. $89,000 17.300 5.100

e. Allocated overhead to jobs at the predetermined overhead rate of 40% of direct labor Cost.

f. Houses completed: 302, 304. g. House sold: 304 for $152.500. Required 1. Record the events in the general journal. 2. Open T-accounts for Work in Process Inventory and Finished Goods Inventory. Post the appropriate entries to these accounts, identifying each entry by letter. Determine the ending account balances, assuming that the beginning balances were zero. 3. Add the costs of unfinished houses, and show that this total amount equals the ending balance in the Work in Process Inventory account. 4. Add the costs of completed houses that have not yet been sold, and show that this total amount equals the ending balance in the Finished Goods Inventory account. 5. Compute the gross profit on each house that was sold. What costs must the gross profit cover for Plantation Construction?