Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ensign landscape design designs landscape plans and plants the material for clients... Please change the information to the following: a. REQUIREMENTS #2 and #3 ONLY

Ensign landscape design designs landscape plans and plants the material for clients...

image text in transcribed

Please change the information to the following:

a. REQUIREMENTS #2 and #3 ONLY of Exercise 4-49 (in your textbook on page 202). Assume Direct Labor workers make $20 per hour, so with the given labor cost per job, you can determine the number of hours worked. CHANGE the Exercise to say that Overhead is applied at the rate of $32 per direct labor hour. ALSO CHANGE to say that Job #39 and Job #40 were completed and sold, while Job #41 and Job #42 are complete but not sold, and Job #43 is not completed yet.

image text in transcribed

b. Use the information in Problem 4-53 (in your textbook on page 204) to prepare journal entries for the month of July with the following CHANGES. First, assume that the company uses a plantwide overhead rate based on direct labor dollars. Also assume that estimated information for the year includes Direct labor dollars of $1,642,000. Finally, assume that the company sells its jobs at a selling price equal to (cost + 25% of cost markup).

Exercise 4-49 Calculation of Work in Process and Cost of Goods Sold with Multiple Jobs Ensign Landscape Design designs landscape plans and plants the material for clients. On April 1, there were three jobs in process, Jobs 39,40, and 41. During April, two more jobs were started, Jobs 42 and 43. By April 30, Jobs 40, 41, and 43 were completed and sold. The following data were gathered: Job 39 Job 40 Job 41 Job 42 Job 43 Balance, April 1 $540 $3,400 $2.990 Direct materials 700 560 375 $3.500 $6.900 Direct labor 500 600 490 2.500 3,000 Overhead is applied at the rate of 110% of direct labor cost. Jobs are sold at cost plus 30%. Selling and administrative expenses for April totaled $4.575. (Round all amounts to the nearest dollar.) Required: 1. Prepare job-order cost sheets for each job as of April 30. 2. Calculate the ending balance in Work in Process (as of April 30) and Cost of Goods Sold for April. 3. Construct an income statement for Ensign Landscape Design for the month of April. $ 0 0 Problem 4-53 Overhead Application and Job-Order Costing Heurion Company is a job-order costing firm that uses a plantwide overhead rate based on direct labor hours. Estimated information for the year is as follows: Overhead $789,000 Direct labor hours 100,000 Heurion worked on five jobs in July. Data are as follows: Job 741 Job 742 Job 743 Job 744 Job 745 Balance, July 1 $29,870 $55.215 $27,880 $ Direct materials $25.500 $39,800 $14,450 $13.600 $ 8,420 Direct labor cost $61,300 $48.500 $28.700 $24,500 $21,300 Direct labor hours 4,000 3.400 1.980 1,600 1.400 By July 31, Jobs 741 and 743 were completed and sold. The remaining jobs were in process. Required: 1. Calculate the plantwide overhead rate for Heurion Company. (Note: Round to the nearest cent.) 2. Prepare job-order cost sheets for each job showing all costs through July 31. (Note: Round all amounts to the nearest dollar.) 3. Calculate the balance in Work in Process on July 31. 4. Calculate Cost of Goods Sold for July

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

Financial Accounting

Authors: C. William Thomas, Wendy M Tietz

13th Edition

013689903X, 9780136899037

More Books

Students also viewed these Accounting questions

Question

Appreciate the services that consultants provide

Answered: 1 week ago

Question

Know about the different kinds of consultants

Answered: 1 week ago