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	$570	$3,380	$3,010
Direct materials	740	610	370	$3,450	$6,880
Direct labor	480	550	540	2,450	2,950

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 $4,550. (Round all amounts to the nearest dollar.)

Refer to the list below for the exact wording of text items within your job-cost sheets and income statement.

Labels
Add
Less
Amount Descriptions
Applied overhead
Beginning balance
Cost of goods sold
Direct labor
Direct materials
Gross margin
Operating income
Operating loss
Sales
Selling and administrative expenses
Total

1. Prepare job-order cost sheets for each job as of April 30. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your job-cost sheets.

Ensign Landscape Design

Job-Order Cost Sheets

For the Month of April

1		Job 39	Job 40	Job 41	Job 42	Job 43
2	Beginning balance
3
4
5
6

2. Calculate the ending balance in Work in Process (as of April 30) and Cost of Goods Sold for April.

Ending Balance in Work in Process:

Cost of Goods Sold for April:

3. Construct an income statement for Ensign Landscape Design for the month of April. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your income statement. If a net loss has been incurred, enter that amount as a negative number using a minus sign.

Ensign Landscape Design

Income Statement

For the Month Ended April 30

1

2

3

4

5

6

Question 2

Yurman Inc. uses a job-order costing system. During the month of May, the following transactions occurred:

May	1	Purchased materials on account for $29,680.
	3	Requisitioned materials totaling $24,480 for use in production. Of the total, $9,220 was for Job 58, $8,940 for Job 59, and the remainder for Job 60.
	31	Incurred direct labor for the month of $28,800, with an average wage of $16 per hour. Job 58 used 790 hours; Job 59, 590 hours; and Job 60, 420 hours.
	31	Incurred and paid actual overhead of $17,860 (credit Various Payables).
	31	Charged overhead to production at the rate of $4.70 per direct labor hour.
	31	Completed and transferred Jobs 58 and 59 to Finished Goods.
	31	Sold Job 57 (see beginning balance of Finished Goods) and Job 58 to their respective clients on account for a price of cost plus 40%.

Beginning balances as of May 1 were:

Materials

$2,350

Work in Process

0

Finished Goods (Job 57)

25,550

CHART OF ACCOUNTS

Yurman Inc.

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
131	Supplies
132	Prepaid Insurance
141	Raw Materials
142	Work in Process
143	Overhead Control
144	Finished Goods
170	Land
180	Equipment
181	Accumulated Depreciation

	LIABILITIES
210	Accounts Payable
220	Wages Payable
230	Various Payables

	EQUITY
310	Common Stock
320	Retained Earnings

	REVENUE
410	Sales Revenue

EXPENSES

510

Cost of Goods Sold

520

Insurance Expense

530

Wages Expense

540

Supplies Expense

550

Utilities Expense

560

Depreciation Expense

590

Miscellaneous Expense

Refer to the list below for the exact wording of text items within your job-order cost sheets.

Amount Descriptions
Applied overhead
Direct labor
Direct materials
Total

1. Prepare journal entries for transactions from May 1 through 31. Refer to the Chart of Accounts for the exact wording of account titles. Enter all amounts rounded to the nearest whole dollar.

PAGE 1

GENERAL JOURNAL

	DATE	ACCOUNT	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

2. Prepare job-order cost sheets for Jobs 58, 59, and 60. Refer to the list of Amount Descriptions for the exact wording of text items within your job-order cost sheets. All amount cells must have an entry; enter zeros as needed.

Yurman Inc.

Job-Order Cost Sheets

For the Month of May

1		Job 58	Job 59	Job 60
2
3
4
5

3. Calculate the ending balance of Raw Materials.

Raw Materials ending balance is .

4. Calculate the ending balance of Work in Process.

Work in Process ending balance is .

5. Calculate the ending balance of Finished Goods.

Finished Goods ending balance is .