At the end of the first month of work the following information was pulled from the work in process inventory records for the jobs that had been started by the three groups date is May 31 is missing job SOC 1 During the month of June the following transactions related to the three active upgrades took place June 1 Requisitioned site supplies from raw materials inventory Job SOC 01, $1,325 Job SOC 02, $860 June 1 Annual Construction liability insurance premium paid for three site crews, $18,000 June 2 Monthly rental of small equipment for all three sites, $910 June 3 Requisitioned site supplies from raw materials inventory Job SOC 3, $891 June 5 Requisitioned direct materials from raw materials inventory Job SOC 1, $2,100 Job SOC 2, $6,000 Job SOC 03, $500 June 10 Transferred completed raw materials from the factory, $28,000 June 15 Paid direct labour costs Job SOC 1, $5,000 Job SOC 2, $8,000 Job SOC 3, $1,500 and employee benefits totaling $2,900 June 16 Job SOC 1 completed June 21 Requisitioned site supplies from raw materials inventory Job SOC 03, $3,000 June 21 Requisitioned direct materials from raw materials inventory Job SOC 03, $756 June 23 Job SOC 3 completed June 30 Monthly depreciation on large equipment for three sites, $6,000 June 30 Paid direct labour costs Job SOC 2, $3,200 Job SOC 3, $7,200 and employee benefits totaling $2,080 June 30 Paid salary site supervisors, delivery drives and site cleaners, $8,000 June 30 Paid rent for on site portable toilets and garbage containers for the month, $2,100 Required a) UsingtheinformationprovidedfromtheworkinprocessbalancesofMay31,calculate the predetermined overhead rate that Waterways has using for its installation b) Waterways writes off any balance in the manufacturing overhead account to Cost of Goods Sold at the end of every month Assuming that all transactions listed above relate to the three upgrades, calculate the balance in the manufacturing overhead account at the end of June, and indicate if it is over or under applied c) Prepare summary journal entries to record all transactions for the month of June Dates and explanation are not required d) Determine the balance in the Work in Process account at the end of the month and reconcile this balance to the jobs not completed at the end of the month e) Waterways received a contract price of $75,000 for each upgrade completed Determine the gross profit on the completed jobs during the month of June Direct Materials Job Number Direct Labour Manufacturing Ovherhead WIP Total Job SoC 1 May 10 May 15 5,000 7,500 $7,000 6,000 13,000 8,400 2 200 $15,600 $12,500 $41,100 May 3 May 15 May 31 3,000 $4,300 $5,160 4,200 $7,300 8,760 $20,260 ob SOC May 15 May 18 May 31 2,400 7,200 $2,000 6,000 6,000 10,500 $12,500 $15,000 38,000

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 18, 2024

At the end of the first month of work the following information was pulled from the work in process inventory records for the jobs that

At the end of the first month of work the following information was pulled from the work in process inventory records for the jobs that had been started by the three groups.

date is May 31 is missing job SOC-1

image text in transcribed

During the month of June the following transactions related to the three active upgrades took place:

June 1	Requisitioned site supplies from raw materials inventory Job SOC-01, $1,325; Job SOC-02, $860
June 1	Annual Construction liability insurance premium paid for three site crews, $18,000
June 2	Monthly rental of small equipment for all three sites, $910
June 3	Requisitioned site supplies from raw materials inventory Job SOC-3, $891
June 5	Requisitioned direct materials from raw materials inventory Job SOC-1, $2,100; Job SOC-2, $6,000;Job SOC-03, $500
June 10	Transferred completed raw materials from the factory, $28,000
June 15	Paid direct labour costs: Job SOC-1, $5,000; Job SOC-2, $8,000; Job SOC-3, $1,500 and employee benefits totaling $2,900
June 16	Job SOC-1 completed
June 21	Requisitioned site supplies from raw materials inventory Job SOC-03, $3,000
June 21	Requisitioned direct materials from raw materials inventory Job SOC-03, $756
June 23	Job SOC-3 completed
June 30	Monthly depreciation on large equipment for three sites, $6,000
June 30	Paid direct labour costs: Job SOC-2, $3,200; Job SOC-3, $7,200 and employee benefits totaling $2,080
June 30	Paid salary site supervisors, delivery drives and site cleaners, $8,000
June 30	Paid rent for on-site portable toilets and garbage containers for the month, $2,100

Required:

a) UsingtheinformationprovidedfromtheworkinprocessbalancesofMay31,calculate the predetermined overhead rate that Waterways has using for its installation.
b) Waterways writes off any balance in the manufacturing overhead account to Cost of Goods Sold at the end of every month. Assuming that all transactions listed above relate to the three upgrades, calculate the balance in the manufacturing overhead account at the end of June, and indicate if it is over or under applied.
c) Prepare summary journal entries to record all transactions for the month of June. Dates and explanation are not required.
d) Determine the balance in the Work in Process account at the end of the month and reconcile this balance to the jobs not completed at the end of the month.
e) Waterways received a contract price of $75,000 for each upgrade completed. Determine the gross profit on the completed jobs during the month of June.

Direct Materials Job Number Direct Labour Manufacturing Ovherhead WIP Total Job SoC-1 May 10 May 15 5,000 7,500 $7,000 6,000 13,000 8,400 2.200 $15,600 $12,500 $41,100 May 3 May 15 May 31 3,000 $4,300 $5,160 4,200 $7,300 8,760 $20,260 ob SOC May 15 May 18 May 31 2,400 7,200 $2,000 6,000 6,000 10,500 $12,500 $15,000 38,000