a. Purchased materials on account, $480,000.

b.

Incurred total manufacturing wages of $117,000, which included both direct labor and indirect labor. Used direct labor in manufacturing as follows:

	Direct Labor
Chalet 13. . . . . . . . . . .	$14,200
Chalet 14. . . . . . . . . . .	$28,900
Chalet 15. . . . . . . . . . .	$19,500
Chalet 16. . . . . . . . . . .	$21,000

c.

Requisitioned direct materials in manufacturing as follows:

	Direct Materials
Chalet 13. . . . . . . . . . . .	$41,800
Chalet 14. . . . . . . . . . . .	$56,700
Chalet 15. . . . . . . . . . . .	$62,600
Chalet 16. . . . . . . . . . . .	$66,000

d.

Depreciation of manufacturing equipment used on different chalets, $6,300.

e.

Other overhead costs incurred on Chalets 1316:

Equipment rentals paid in cash. . . . .	$10,400
Prepaid plant insurance expired. . . . .	$4,000

f.

Allocated overhead to jobs at the predetermined rate of 60% of direct labor cost.

g.

Chalets completed: 13, 15, and 16.

h.

Chalets sold on account: 13 for $ 90,000 and 16 for $142,000.

Requirement 2. Post the appropriate entries to the T-accounts, identifying each entry by letter. Determine the ending account balances, assuming that the beginning balances were zero. Identify the ending account balance with the "Bal" reference on the applicable side of the account.

Work in Process Inventory

Finished Goods Inventory

Requirement 3. Summarize the job costs of the unfinished chalet and show that this equals the ending balance in Work in Process Inventory.

Add the costs of the unfinished chalet, and show that this total amount equals the ending balance in the Work in Process Inventory account.

Sunset Homes
Reconciliation of Work in Process Inventory Subsidiary
and Control Accounts
Unfinished chalet:
	Direct materials
	Direct labor
	Manufacturing overhead (60% of labor)
	Total cost equals Work in Process balance

Requirement 4. Summarize the job cost of the completed chalet that has not yet been sold and show that this equals the ending balance in Finished Goods Inventory.

Sunset Homes
Reconciliation of Finished Goods Inventory Subsidiary
and Control Accounts
Completed, unsold chalet:
	Direct materials
	Direct labor
	Manufacturing overhead (60% of labor)
	Total cost equals Finished Goods balance

Requirement 5. Compute the gross profit on each chalet that was sold. What costs must the gross profit cover for Sunset

Homes?

Begin by determining which costs must be included to compute gross profit for Sunset Homes.

The gross profit must cover these types of costs: (Complete all answer boxes.)

Now compute the gross profit for each chalet sold.

Sunset Homes
Gross Profit on Chalets Sold In May
Less:
Gross profit