Characteristics of Production Process, Cost Measurement Vince Kim, of EcoScape Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughout the state. Each job is different, requiring different materials and labor for installing the systems. EcoScape estimated the following for the year: Number of direct labor hours Direct labor cost Overhead cost 874,500 During the year, the following actual amounts were experienced: Number of direct labor hours Direct labor incurred 6,200 174,400 $55.260.60 Overhead incurred Required: 1. Should EcoScape use process costing or job-order costing? 2. If EcoScape uses a normal costing system and overhead is applied on the basis of direct labor hours, What is the overhead rate? Round your answer to the nearest cent. per direct labor hour What is the average actual wage rate? per direct labor hour What is the cost of an installation that takes $3,790 of direct materials and 30 direct labor hours? Check My Work Previous Next Job Cost Flows, Journal Entries On April 1, Sangvikar Company had the following balances in its inventory accounts: Work-in-Process Inventory Finished Goods Inventory $12,720 1,600 Work-in-process inventory is made up of three jobs with the following costs: Job 114 Job 115 Direct materials $2.774 $1,450 Direct labor 1,560 1,000 2.580 During April, Sangvikar experienced the transactions listed below. a. Materials purchased on account, $30,000. b. Materials requisitioned: Job 114, $16,500; Job 115, $12,400; and Job 116, $5,000. c. Job tickets were collected and summarized: Job 114, 150 hours at $12 per hour; Job 115, 220 hours at $17 per hour; and Job 116, 80 hours at $18 per hour. d. Overhead is applied on the basis of direct labor cost. e. Actual overhead was $4,495. f. Job 115 was completed and transferred to the finished goods warehouse. 9. (1) Job 115 was shipped, and (2) the customer was billed for 140 percent of the cost. Required: 1. Prepare journal entries for the April transactions. b. C d Check My Work (2) goods warehouse. g. (1) Job 115 was shipped, and (2) the customer was billed for 140 percent of the cost. Required: 1. Prepare journal entries for the April transactions. 2. Calculate the ending balances of each of the inventory accounts as of April 30. Post the entries to the T-accounts in the same order in which they were journalized. Materials Work in Process Finished Goods Previous