1 Central Pool Company builds custom swimming pools for homeowners in Toronto, Calgary, and Montreal. 2 It uses material requisition forms and direct labor time tickets to trace direct materials and direct labor costs to specific jobs. 3 Manufacturing overhead is applied to jobs at a rate of $100 per direct labor hour. 4 During the first month of operations, the company recorded the following transactions: 5 1168677 9 OF 11 10 c) Recorded the following labor costs (paid in cash): Direct labor $50,000 . Construction supervision 30,000 13 d) Recorded the following actual manufacturing overhead costs: . Construction insurance $ 5,000 Construction equipment depreciation 25,000 Pool permits and inspections 5,000 12 111 14 S67899 15 16 18 a) Purchased $200,000 in raw materials. b) Issued the following materials to production: 19 $130,000 was directly traceable to specific jobs. $20,000 was not directly traceable to specific jobs. 17 e) Recorded the following nonmanufacturing costs: 20 . Office equipment depreciation $ 3,000 Rent and insurance on owner's company car 2,000 Advertising costs 10,000 Assignment Requirements +

1 Central Pool Company builds custom swimming pools for homeowners in Toronto, Calgary, and Montreal. 2 It uses material requisition forms and direct labor time tickets to trace direct materials and direct labor costs to specific jobs. 3 Manufacturing overhead is applied to jobs at a rate of $100 per direct labor hour. 4 During the first month of operations, the company recorded the following transactions: a) Purchased $200,000 in raw materials. b) Issued the following materials to production: - $130,000 was directly traceable to specific jobs - $20,000 was not directly traceable to specific jobs. c) Recorded the following labor costs (paid in cash) - Direct labor $50,000 - Construction supervision 30,000 d) Recorded the following actual manufacturing overhead costs: - Construction insurance 5,000 - Construction equipment depreciation 25,000 - Pool permits and inspections 5,000 e) Recorded the following nonmanufacturing costs: - Office equipment depreciation $3,000 - Aent and insurance on owner's company car 2,000 - Advertising costs 10,000 1 Central Pool Company builds custom swimming pools for homeowners in Toronto, Calgary, and Montreal. 2 It uses material requisition forms and direct labor time tickets to trace direct materials and direct labor costs to specific jobs. 3 Manufacturing overhead is applied to jobs at a rate of $100 per direct labor hour. 4 During the first month of operations, the company recorded the following transactions: a) Purchased $200,000 in raw materials. b) Issued the following materials to production: - $130,000 was directly traceable to specific jobs - $20,000 was not directly traceable to specific jobs. c) Recorded the following labor costs (paid in cash) - Direct labor $50,000 - Construction supervision 30,000 d) Recorded the following actual manufacturing overhead costs: - Construction insurance 5,000 - Construction equipment depreciation 25,000 - Pool permits and inspections 5,000 e) Recorded the following nonmanufacturing costs: - Office equipment depreciation $3,000 - Aent and insurance on owner's company car 2,000 - Advertising costs 10,000