File Edit Tools Help New Mode Delay Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential clients. An Inventory of materials and equipment is on hand at all times so that work can start as quickly as possible. Special equipment Is ordered as required. On May 1, the Materials and Equipment Inventory account had a balance of $55,000. The Work-In-Process Inventory account Is maintained to record costs of work not yet complete. There were two such jobs on May 1 with the following costs. Job 27 Job 33 Highlands Mill Pine Ridge Estates Materials and equipment $18, 225 $ 54, 403 Direct labor 15,430 27, 283 Overhead (applied) 6, 160 10, 888 Overhead has been applied at 40 percent of the costs of direct labor. During May, Kim's Asphalt started two new jobs. Additional work was carried out on Jobs 27 and 33, with the latter completed and billed to Pine Ridge Estates. Details on the costs Incurred on jobs during May follow, Job 27 33 34 Materials and equipment 34,989 36,780 56,503 35, 893 Direct labor (wages payable) 6,460 8,650 7,890 3, 509 Other May Events 1. Received $14,400 payment on Job 24 delivered to customer in April 2. Purchased materials and equipment for $11,300 on account 3. Billed Pine Ridge Estates $149,000 and received payment for $145,000 of that amount. 4. Determined that payroll for Indirect labor personnel totaled $840. 5. Issued supplies and Incidental materials for current jobs costing $345. 6. Recorded overhead and sovertising costs for the operation as follows (all cash except equipmentdepreciation) $748 Storage area rental 865 Truck and delivery cost Advertising and promotion campaign Telephones and other miscellaneous 515 Equipment prot Lation Required: b. Prepare journal series to record the flow of costs for operations during May b. Calculate the amount of over. of underspelled overnese for the month. c. Determine inventory be ances for Meters's sne Equ amens Inventory and Work-in-process Inventory Complete this question by entering your answers in the tabs below