Job Order Costing

The ABC Company builds residential housing. The company started operations on June 1^st, 2018. Below are transactions that occurred in the first month of operations (June 2018)

Journal Entries:

June 1) ABC Company sold common stock for $1,500,000 in cash. The company issued 15,000 shares of $100 Par stock.

June 2) ABC Company purchased $300,000 of building materials. Paying $100,000 cash and the rest on account due in 45 days. No credit terms were given.

June 3) ABC Company purchased construction equipment for $240,000 cash. The company uses the straight line method of depreciation. The equipment has a useful life of 9 years and a residual value of $24,000.

June 4) ABC Company started construction on 3 homes (Job 100, 101, 102) by requisitioning the following materials: The materials were delivered to the job sites.

Job Number	Direct Materials	Indirect Materials
100	$50,000	$2,000
101	$30,000	$1,000
102	$25,000	$1,500

June 14) The following direct labor was used and paid for during the period ($30/hour):

Job Number	Amount	Hours
100	$33,000	1100
101	$27,000	900
102	$22,500	750

Predetermined overhead rate calculated May 8, 2018

(Estimated Total Overhead Costs) / (Estimated Direct Labor Hours)

($24,000) / (3000 hours) = $7 per direct labor used

June 21) Job 100 is completed and ready for sale.

The following actual costs were incurred and paid (Except for depreciation transactions listed below) during the month of June:

June 2) Insurance on houses under construction $2,000 (covers up to any number of homes.

June 3) Insurance on anticipated completed homes $500 no matter the number.

June 8) Construction supervisor salary $6,000 (Paid Monthly)

June 8) Company president salary $8,000 (Paid Monthly)

June 8) Administrative staff salaries $3,000 (Paid Monthly)

June 12) Building Permits $3,000

June 15) Fuel for construction equipment $1,500

June 15) Purchased land for $50,000 and a building for $112,000 to use as corporate HQ

June 20) Insurance on HQ is $1,000 per month

June 23) Declared a $5,000 cash dividend to be paid on July 23, 2018.

June 24) Job 100 is sold for $250,000; Cash $150,000 & $100,000 note receivable to be received on September 19, 2018. The amount received will be $109,000 principal and interest. The note is a 360 day (One year is 360 days) 9% simple interest note. An adjusting entry must be made for interest revenue earned for the month of June.

June 30) Depreciation for June on HQ Building $2,500

June 30) Depreciation on the construction equipment was _______________

June 30) Apply (Appropriate) overhead to incomplete jobs

June 30) Account for ending balance in Overhead account

Note: All June 30 entries are Adjusting Entries

ABC

Company
General journal for the month of june 2018
Date	Account Title	Debit	Credit
June.1	Cash	$ 1,500,000.00	?
?	Common Stock	?	$ 1,500,000.00
?	(Issue of 15,000 shares of $100 par stock)	?	?
June.2	Building Materials	$ 300,000.00	?
?	Cash	?	$ 100,000.00
?	Account Payable	?	$ 200,000.00
?	(purchase of Building Materials for cash and on account)	?	?
June.2	Works Overhead	$ 2,000.00	?
?	Cash	?	$ 2,000.00
?	(insurance premium paid)	?	?
June.3	Construction Equipment	$ 240,000.00	?
?	Cash	?	$ 240,000.00
?	(Purchase of construction equipment for cash)	?	?
June.3	Prepaid Insurance	$ 500.00	?
?	Cash	?	$ 500.00
?	(insurance premium paid)	?	?
June.4	Work-in-process - Job#100	$ 50,000.00	?
?	Work-in-process - Job#101	$ 30,000.00	?
?	Work-in-process - Job#102	$ 25,000.00	?
?	Works Overhead	$ 4,500.00	?
?	Building Materials	?	$ 109,500.00
?	(Building Materials issued for construction)	?	?
June.8	Works Overhead	$ 6,000.00	?
?	Cash	?	$ 6,000.00
?	(Construction supervisor salary)	?	?
June.8	Sales and Administration Expense	$ 11,000.00	?
?	Cash	?	$ 11,000.00
?	(President's and administrative staff salaries)	?	?
June.12	Works Overhead	$ 3,000.00	?
?	Cash	?	$ 3,000.00
?	(Building permit )	?	?
June.14	Work-in-process - Job#100	$ 33,000.00	?
?	Work-in-process - Job#101	$ 27,000.00	?
?	Work-in-process - Job#102	$ 22,500.00	?
?	Cash	?	$ 82,500.00
?	(Wages paid for direct labor)	?	?
June.15	Works Overhead	$ 1,500.00	?
?	Cash	?	$ 1,500.00
?	Land	$ 50,000.00	?
?	Building	$ 112,000.00	?
?	Cash	?	$ 162,000.00
?	(Purchase of land and building for office)	?	?
June.20	Insurance Expense	$ 1,000.00	?
?	Cash	?	$ 1,000.00
?	(Insurance premium on headquarter)	?	?
June.21	Work-in-process - Job#100	$ 7,700.00	?
?	Works Overhead	?	$ 7,700.00
?	(Overhead applied at $7 per direct labor hour to Job#100)	?	?
June.21	Jobs Completed	$ 90,700.00	?
?	Work-in-process - Job#100	?	$ 90,700.00
?	(Cost of job#100 transferred to jobs completed account)	?	?
June.23	Retained Earnings	$ 5,000.00	?
?	Dividend Payable	?	$ 5,000.00
?	(Declaration of dividend )	?	?
June.24	Cash	$ 150,000.00	?
?	Note Receivable	$ 100,000.00	?
?	Sales Revenue	?	$ 250,000.00
?	(Sale of Job#100 building)	?	?
?	Cost of jobs sold	$ 90,700.00	?
?	Jobs Completed	?	$ 90,700.00
?	(Cost of job#100 sold transferred to cost of jobs sold)	?	?
?	?	?	?
Adjusting Journal Entries
June.30	Depreciation Expense	$ 2,500.00	?
?	Accumulated Depreciation - HQ building	?	$ 2,500.00
?	(Depreciation expense on HQ building recorded)	?	?
June.30	Works Overhead	$ 2,000.00	?
?	Accumulated Depreciation - Construction Equipment	?	$ 2,000.00
?	(Depreciation expense on construction equipment)	?	?
June.30	Work-in-process - Job#101	$ 6,300.00	?
?	Work-in-process - Job#102	$ 5,250.00	?
?	Works Overhead	?	$ 11,550.00
?	(Overhead applied at $7 per direct labor hour for Jobs #101 and 102)	?	?
June.30	Works Overhead	$ 3,250.00	?
?	Cost of Jobs Sold	?	$ 3,250.00
?	(Overapplied overhead adjusted)	?	?
June.30	Interest Receivable	$ 750.00	?
?	Interest Revenue	?	$ 750.00
?	(Interest on note receivable at 9% for June recorded)	?	?

1. Prepare T Account

2. Based on the T Account build

a) Unadjusted Trial Balance,

b) Adjusted Trial Balance

c) Financial Statements

d) Worksheets (Three Trial Balances)

Show in an excel format, please. Thank you.