Chelsea Household Renovations (CHR) is a rapidly growing company that has not been profitable despite increases in sales. It has hired you as a consultant to find ways to improve profitability. You believe that the problem results from poor cost control and Inaccurate cost estimation on jobs. The company has essentially no accounting system from which to collect data. You are able, however, to piece together the following information for June, Production 1. Completed Job 61 2. Started and completed Job 62 3. Started Job 63. Inventory values 1. Work-in-process inventory (excluding applied overhead): May 31: Job 61 Direct materials Labor (060 hours x $48) $ 8,000 38,400 June 30: Job 63 Direct materials Lebon (1.040 hours $40) $ 6,400 41,600 . Overhead was applied to jobs using a predetermined rate per labor dollar that has been used since the company began operations. All direct materials were purchased for cash and charged directly to Work in Process Inventory when purchased. Direct materials . Direct labor costs charged to jobs in June were $128,000. All labor costs were the same per hour for all laborers for June purchased in June amounted to $18,400. Required: Calculate the following a. The cost elements (material, labor, and overhead) of cost of goods sold before adjustment for over or underapplied overhead for each job sold b. The value of each cost element material, labor and overhead) for each job in Work in process inventory at June 30 e. Over or underapplied overhead for June Complete this question by entering your answers in the tabs below. Required a Required B Required The cost elements (material, labor, and overhead) of cost of goods sold before adjustment for over- or underapplied overhead for each job sold. Materials for Job No. 62 Labor for Job No. 62 Overhead for Job No. 62 Required B > Complete this question by entering your answers in the tabs below. required A Required B Required he value of each cost element (material, labor, and overhead) for each job in Work-in-process inventory at June 30. Cash Work in Process Job No 61 Beg bal Current costs End bal Work in Process Job No. 62 Work in Process Job Nosa Be bal Beg bal End hal End bal Cost of Goods Sold Job No. 61 Cost of Goods Sold Job No. 62 bal Bog bal End bal d bal Overhead Wagos Payable Beg bal End bal Underapplied Overhead (Required A Required) Complete this question by entering your answers in the tabs below. Required A Required B Required C Over- or underapplied overhead for June. Required A Required B Required The value of each cost element (material, labor, and overhead) for each job in Work in process inventory at June 30. Cash Work in Process Job No. 61 Degu Cuvent costs En Work in Process Job No. 62 Work in Process Sot No 63 Beg bal End Dal Ed Cont of Goods Sold Job No. 61 Cost of Goods Sold Job No. 67 Bog bal Beg bal End bal End bol Ovoint Wages Payabile [Blog but Endbal Und applied Overhead
