Computing job costs and overhead rate; assigning costs to inventory C1P3 At the end of june, the job cost sheets at Ace Roofers show the following costs accumulated on three jobs. Additional information a. Job 5 was started in May, and the following costs were assigned to it in May: direct materials, s6,ooo; direct labor, 51,800 ; and applied overhead, spoo. Job 5 wax finisthed June. b. Job 6 and job 7 were started in June; Job 6 was finished in June, and job is to be completed in July. c. Overhead cout is applied with a predetermined rate based on direct labor cout. The predetermined overbead rate did not chapge scross these months: Required 1. What is the total cost of direct materials requistioned in June? 2. What is the total cost of direct labor uied in June? 3. What is the prodetermined overhead rate? 4. What is the total cost transferred to Finished Coods Inventory in June? Problem 15-3A Computing and recording job costs; preparing income statement and balance sheet P1P2P3P4 Bergo Bay's accounting system generated the following account balances on December 31 . The company's manager knows something is wrong with this list of balances does not show any balance for Work in Process inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. These six documents must be processed to bring the accounting records up to date. Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is zoo 76 of direct labor cost. Required 1. Une the document information above to prepare journal entries for the following costs: a. Direct materials. b. Direct labor. c. Overhead applied. d. Indirect materials e. Indirect labor. 2. Set up a Factory owerhead T-aecount asd enter amoubts from part i rolated to factory overbead. Determine the amount of over- or underapplied overhead. Prepare the eotry. to close any over-of underapplied overhead to cost of coods Sold. 3. Prepare a revised list of account balances as of December 32. Hint: Use the priof year's Retained Earnings balance of sa7r,ooo in this tist. 4. Prepare an income statement for the year and a balance sheet as of December at. Hint: Retained earaisgs is was6.80o at the cad of the currest year: 5. Assume that the $5,600 ua materials requisition 12 should have been direct materials chareed to job 404 , Does this error result in everitatement ar understatement of total assets en the balance sbeet at December 39 ? Problem 15.4A Preparing job cost sheets, recording costs, preparing inventory ledger accounts P1P2P3 Watercraft's predetermined overhead rate is 20096 of direct labor, Information on the company's production activities during May follows. a. Purchased raw materials on credit, 5200,000 b. Materials requisitions record use of the following materials for the month. c. Time tickets record use of the following labor for the month. These wages were paid in cash: d. Applied overhead to Jobs 136,138 , and 139 . e. Transferred Jobs 136,138 , and 139 to Finished Goods inventory: f. Sold Jobs 136 and 138 on credit at a total price of 5525,000 ; d. Applied overhead to Jobs 136,138 , and 139 . e. Transferred Jobs 136, 138, and 139 to Finished Goods Inventory. f. Sold Jobs 136 and 138 on credit at a total price of 5525,000 . g. Recorded the cost of goods sold for Jobs 136 and 138 . h. Incurred the following actual other overhead costs during the month 1. Applied overhead at month-end to the Work in Frocess inventory account (for Job 137 and job 140) using the predetermined overhed rate of zoo\%t of direct iabor cos: Required 1. Prepare a job cost sbeet for each job worked ob during the month, Uwe the following aimplified form. 3. Prepare journal entries to record the events and trancactions a through i. 3. Set up T-accoubs for each of the following accoubts, each of which started the manth with a zero balance: Raw Materials inwentory, Work in Process faventory, naithed Coods inventory, Factory Overhead, Cost of Goods sold. Post the journal entries to these Traccounts and determine the ending balance of each accouat. 4. (a) Compute the total cost of each job in procest and prove that the sum of their costs equals the Work in Proces Inventory account balance, (b) Compute the total cost of each job finished but not sold, and prove that the sum of their couts equals the Finished doods inventory balance. (c) Compete the total cost of each fob sold, and prove that. the sum of their costs equals the Cost of coods Sold balance. Check (af) Ce. Vactory Ovethes, wyzooo