Birmingham Contractors uses a job order costing system. In May 2013, the company made a $3,300,000 bid to build a pedestrian overpass over the beach highway at Gulf Shores, Alabama. Birmingham Contractors won the bid and assigned #515 to the project. Its completion date was set at December 15, 2013. The following costs were estimated for completion of the overpass: $1,240,000 for direct material, $670,000 for direct labor, and $402,000 for overhead.

During July, work began on job #515; DM cost assigned to Job #515 was $121,800, and DL cost associated with it was $175,040. The firm uses a predetermined OH rate of 60 percent of DL cost. Birmingham Contractors also worked on several other jobs during July and incurred the following costs:

During July, Birmingham Contractors completed several jobs that had been in process before the beginning of the month. These completed jobs sold for $1,224,000, and payment will be made to the company in August. The related job cost sheets showed costs associated with those jobs of $829,000. At the beginning of July, Birmingham Contractors had Work in Process Inventory of $871,800.

a. Prepare a job order cost sheet for Job #515, including all job details, and post the appropriate cost information for July.

b. Prepare journal entries for the preceding information.

c. Prepare a Cost of Goods Manufactured Schedule for July for Birmingham Contractors.

d. Assuming that the company pays income tax at a 40 percent rate, prepare an income statement for Birmingham Contractors.

Directmaterial(includingJob#515)issuedDirectlabor(includingJob#515)accruedIndirectlaboraccruedAdministrativesalariesandwagesaccruedDepreciationonconstructionequipmentDepreciationonofficeequipmentCliententertainment(onaccountspayable)Advertisingforfirm(paidincash)Indirectmaterial(fromsuppliesinventory)Miscellaneousexpenses(design-related;tobepaidinthefollowingmonth)Accruedutilities(foroffice,$1,800;forconstruction,$5,400)$579,300584,00055,80039,60026,4007,80011,1006,60018,60010,2007,200