Fundamentals of Cost Accounting. 5th Edition Aa 7-57. Incomplete Data: Job Costing Chelsea Household Renovations (CHR) is a rapidly growing company that has not been profitable despite increases in sales. It has hired you as a consultant to find ways to improve profitability. You believe that the problem results from cost control and inaccurate cost estimation on jobs. The company has poor essentially no accounting system from which to collect data. You are able, e however, to piece together the following information for June: cel . Production 1. Completed Job 61. 2. Started and completed Job 62. 3 Started Job 63. . Inventory values 1. Work-in-process inventory (excluding applied overhead) May 31: Job 61 Direct materials Labor (960 hours $40) $ 8,000 38,400 June 30: Job 63 Direct materials $ 6,400 essestially no accoonting xystems from which to collect data, You are able, however, to piece together the following information for June Production poor cost eiontral and inaccurate cost estimation on johs. The company has 1 Completed Job 61 2 Started and completed Job 62 3 Started Job 63 . Inventory values i Work-in-process inventory (excluding applied overhead) May 31: Job 61 $ 8,000 38.400 Direct materials Labor (960 hours x $40) June 30: Job 63 Direct materials Labor (1,040 hours x $40) $ 6.400 41,600 . Each job in work-in-process inventory was exactly so percent completed as to Page 28o labor-hours; however, all direct materials necessary to do the entire job were charged to each job as soon as it was started. . There were no direct materials inventories or finished goods inventories at either May 31 or June 30. . Actual overhead was $80,00o . Cost of goods sold (before adjustment for over- or underapplied overhead) Job 61 Materials $ 8,000 Oned apphed to jihe sings prdtemined tose pes labay dollar thuat has been sed sisor the onpay ban operations Al ree naterba uete ercased for cash and cherged directly to Wurk-in-Proons Dreer Losr owts charged se jobs in June were 5128,con All labeor costs wece the same per Regaired Wetite a report to margemest to show s The ost clemetts (isatverial kbor, and ovesheadl of cost of goods sold before adjostment foe oser-or usderapplied arerhead fior each job sold s The value of each cost clement (nsnenial, labor, and overhead) for each joub in wook-in- E. Ooer-or snderapplied casehead for Jue 8, Job Custing and Ethics