Accounting

Indah Arkitek uses job costing methods to identify construction project costs. The company

offers consultation services and also house plan sketches to customers. The table below reports

for three ongoing projects for the month of October $2023.$

The overhead cost for the month of October $2023$ is RM$21,000.$ The overhead cost absorbed into

each project is based on the total hours of the plan designer. The predetermined overhead cost is

RM$120$ for each painter's hour. Projects A and B will be completed in October $2023$ while project C is

expected to be completed in November $2023.$

You are required to:

a$)$ Calculate the amount of overhead costs that will be charged to each driver for the month of

October $2023.$

b$)$ Calculate and prepare cost journal entries that will be transferred to the completed project

account for the month of October $2023.$

c$)$ Calculate the remaining work in process $($work in process$)$ for the month of October $2023.$

d$)$ Calculate the balance of the overhead account at the end of the month and explain the

position.