Divine Homes manufactures prefabricated chalets in Colorado. The company uses a perpetual inventory system and a job cost system in which each chalet is a job. The following events occurred during May: (Click the icon to view the events.) Read the requirements Requirement 1. Record the events in the general journal. (Record debits first, then credits. Exclude explanations from any journal entries.) Start with the entry from event (a). Purchased materials on account, $420,000. x - Journal Entry Requirements Date Accounts Debit Credit a V Accounts Payable Accounts Receivable Accumulated Depreciation Equipment Cash Cost of Goods Sold Finished Goods Inventory Manufacturing Overhead Prepaid Insurance Raw Materials Inventory Sales Revenue Wages Payable Work in Process Inventory 1. Record the preceding events in the general journal. 2. Post the appropriate entries to the T-accounts, identifying each entry by letter. Determine the ending account balances, assuming that the beginning balances were zero. 3. Summarize the job costs of the unfinished chalet and show that this equals the ending balance in Work in Process Inventory. 4. Summarize the job cost of the completed chalet that has not yet been sold and show that this equals the ending balance in Finished Goods Inventory. 5. Compute the gross profit on each chalet that was sold. What costs must the gross profit cover for Divine Homes? Print Done Choose from an and then click Check Answer. P3-49 = Question More Info hd a job cost system in which each chalet is a job. The following events occurred during May: Divine (Cli a. Read th b. Purchased materials on account, $420,000. Incurred total manufacturing wages of $114,000, which included both direct labor and indirect labor. Used direct labor in manufacturing as follows: Require Direct Labor rom any journal entries.) Start wi Chalet 13 $ 14,000 x - - Requirements Date Chalet 14 28,200 Chalet 15 19,500 Chalet 16 $ 21,100 Requisitioned direct materials in manufacturing as follows: C. Direct Materials Chalet 13 $ 41,200 1. Record the preceding events in the general journal. 2. Post the appropriate entries to the T-accounts, identifying each entry by letter. Determine the ending account balances, assuming that the beginning balances were zero. 3. Summarize the job costs of the unfinished chalet and show that this equals the ending balance in Work in Process Inventory. 4. Summarize the job cost of the completed chalet that has not yet been sold and show that this equals the ending balance in Finished Goods Inventory. 5. Compute the gross profit on each chalet that was sold. What costs must the gross profit cover for Divine Homes? Chalet 14 $ 56,100 Chalet 15 62,500 Chalet 16 $ 66,300 Depreciation of manufacturing equipment used on different chalets, $6,800. Other overhead costs incurred on Chalets 1316: d. e. Print 10,000 Done Equipment rentals paid in cash $ P3-49 :s Question Help More Info nd a job cost system in which each chalet is a job. The following events occurred during May: Divine (Cli DICELLONUT Read th Chalet 13 $ 14,000 Chalet 14 $ 28,200 Require rom any journal entries.) Start wit Chalet 15 $ 19,500 Chalet 16 $ 21,100 Requisitioned direct materials in manufacturing as follows: c. Requirements Direct Materials Date Chalet 13 $ 41,200 Chalet 14 $ 56,100 Chalet 15 $ 62,500 Chalet 16 $ 66,300 Depreciation of manufacturing equipment used on different chalets, $6,800. Other overhead costs incurred on Chalets 1316: d. 1. Record the preceding events in the general journal 2. Post the appropriate entries to the T-accounts, identifying each entry by letter. Determine the ending account balances, assuming that the beginning balances were zero. 3. Summarize the job costs of the unfinished chalet and show that this equals the ending balance in Work in Process Inventory. 4. Summarize the job cost of the completed chalet that has not yet been sold and show that this equals the ending balance in Finished Goods Inventory 5. Compute the gross profit on each chalet that was sold. What costs must the gross profit cover for Divine Homes? e. f. Equipment rentals paid in cash $ 10,000 Prepaid plant insurance expired $ 8,000 Allocated overhead to jobs at the predetermined rate of 60% of direct labor cost. Chalets completed: 13, 15, and 16. Chalets sold on account: 13 for $94,000 and 16 for $146,000. g. h. Print Done