5 Chelsea Household Renovations (CHR) is a rapidly growing company that has not been profitable despite increases in sales. It has hired you as a consultant to find ways to improve profitability. You believe that the problem results from poor cost control and inaccurate cost estimation on jobs. The company has essentially no accounting system from which to collect data. You are able, however, to piece together the following information for June. Production 1. Completed Job 61. 2. Started and completed Job 62. 3. Started Job 63. Inventory values 1. Work-in-process inventory (excluding applied overhead): May 31: Job 61 Direct materials Labor (960 hours * $40) $ 8,000 38,400 June 30: Job 63 Direct materials Labor (1,040 hours x $40) $ 6,400 41,600 Each job in work-in-process inventory was exactly 50 percent completed as to labor-hours; however, all direct materials necessary to do the entire job were charged to each job as soon as it was started. . There were no direct materials inventories or finished goods inventories at either May 31 or June 30 Actual overhead was $80,000. Cost of goods sold (before adjustment for over- or underapplied overhead); Job 61 do the entire job were charged to each job as soon as it was started. There were no direct materials inventories or finished goods inventories at either May 31 or June 30. Actual overhead was $80,000. Cost of goods sold (before adjustment for over- or underapplied overhead): Job 61 Materials $ 8,000 Labor ? Overhead Total $123,200 Job 62 Materials Labor Overhead Total ? ? ? ? Overhead was applied to jobs using a predetermined rate per labor dollar that has been used since the company began operations, All direct materials were purchased for cash and charged directly to Work-in-Process Inventory when purchased. Direct materials purchased in June amounted to $18,400. Direct labor costs charged to jobs in June were $128,000. All labor costs were the same per hour for all laborers for June. Required: Calculate the following: a. The cost elements (material, labor, and overhead) of cost of goods sold before adjustment for over- or underapplied overhead for each job sold. b. The value of each cost element (material, labor, and overhead) for each job in Work-in-process inventory at June 30. c. Over- or underapplied overhead for June. Required: Calculate the following: a. The cost elements (material, labor, and overhead) of cost of goods sold before adjustment for over- or underapplied overhead for each job sold. b. The value of each cost element (material, labor, and overhead) for each job in Work-in-process inventory at June 30. c. Over- or underapplied overhead for June. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C The cost elements (material, labor, and overhead) of cost of goods sold before adjustment for over- or underapplied overhead for each job sold. Materials for Job No. 62 $ Labor for Job No. 62 $ 24,000 X 84,000 X 84,000 Overhead for Job No. 62 $ Required A Required B Required c The value of each cost element (material, labor, and overhead) for each job in Work-in-process inventory at June 30. Cash Work-in-Process Job No. 61 Beg, bal. Material Labor X 8,000 38,400 8,000 Material 76,800 Labor X Overhead 19,200 38,400 Overhead x Current costs Labor 65,600 38,400 19,200 Overhead End. bal. 0 Work-in-Process Job No. 62 Work-in-Process Job No. 63 Beg. bal. Material Beg. bal. Material x X Labor OOO 12,000 48,000 24,000 12,000 Material 48,000 Labor 24,000 Overhead Labor X X 6,400 41,600 20,800 Overhead Overhead End. bal. End, bal. 68,800 Cost of Goods Sold Cost of Goods Sold Job No. 61 Job No. 62