Homework: Chapter 17 Homework Save 1 of 1 (0 complete) HW Score: 0%, 0 of 1 pt Score: 0 of 1 pt P17-30A (similar to) Question Help O Sherborn Construction Inc. is a home builder in Arizona Sherbom uses a job order conting system in which each house is a job Because it constructs houses the company uses an account titled Construction Overhead. The company applies overhead based on estimated direct labor costs For the year. It estimated construction overhead of 51 400 000 and total direct labor cost of $3,500,000. The following events occurred during August (Click the icon to view the events) Read the requirements Requirement 1. Calculate Sherbor's predetermined overhead allocation rate for the year More Info Predetermined overhe a. Purchased materials on account, $420.000 b. Requisitioned direct materials and used direct labor in construction Recorded the materials requisitioned Requirements 1. Calculate Sherbor's predetermined overhead allocation rate for the year 2. Prepare journal entries to record the events in the general journal 3. T-accounts for Work in Process Inventory and Finished Goods Inventory have been opened for you Post the appropriate entries to these accounts identifying each entry by letter Determine the ending account balances assuming that the beginning balances were zero 4. Add the costs of the unfinished houses, and show that this total amount equals the ending balance in the Work-in-Process Inventory account 5. Add the costs of the completed house that has not yet been sold, and show that this equals the ending balance in Finished Goods Inventory 6. Compute gross profit on the house that was sold. What costs must gross profit cover for Sherbor Construction? Direct Materials Direct Labor House 402 5 5 5.000 5 19.000 House 403 69,000 39.000 House 404 58.000 55.000 House 305 30.000 52.000 c. The company incurred total wages of $250,000. Use the data from lemb to assign the wages Wages are not yet paid. d. Depreciation of construction equipment, 56,300 e. Other overhead costs incurred Equipment rentals paid in cash, $36.000 Worker liability Insurance expired. 55.000 Allocated overhead to jobs 9. Houses completed 402 404 h. House sold on account 404 for $270,000 Print I Done | Print Done