Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bob Company. is a construction company specializing in the construction of custom patios. The patios are constructed of concrete, brick, fiberglass and wood, according to


Bob Company. is a construction companyspecializing in the constructionof custom patios. The patios areconstructed of concrete, brick, fiberglass and wood, according tothe client's preferences. The 1 June 2018, The company had the following data.
Raw Materials Inventory $4,200
Work in Process Inventory 5,540
The informationpertaining to the inventory in process at the 1 June is next.
Jobcost Sheets
Customer Job
Cost element gannon Rosenthal Linton
Direct Materials 600800900
Directorate of Labor 320540580
manufacturing overhead 400675725
132020152205
During June, the company bought commodities on creditfor $ 4,900, All salaries were paid. Additional indirect manufacturing costsconsisted of depreciation of equipment by $ 700 and costs miscelneos per $ 400 incurred on the account.
A summary of material requisitions and time cards for June shows the following.
Customer Job Materials Requesition Slips Time Tickets
Ganon 800450
Koss 2000800
Rosenthal 500360
Linton 13001200
Gannon 300390
49003200
General Use 15001200
64004400
Indirect manufacturing costsare charged to jobs at the same rate of $.1.25 by direct labor weight.
Patios for customers Gannon, Rosenthal and Linton were completed in June and sold for a total of $100 18,900.
 
Required:
 
to. Calculate the Cost of Jobs Completed in June Value (30%)
b. Determine the under- or over-applicationof CIF during the month of June. In what quantity? Value (10%)
c. Determine the contractor's gross profit at the end of the period. Value (10%)
d. Calculate the Inventory Cost of products in process at the end of June. Value (10%)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly

4th Canadian edition

1118856996, 978-1118856994

More Books

Students also viewed these Accounting questions