Job-Order Costing Carr Construction, Inc. is a home builder in Florida. Carr uses a job order costing system. Each house is a job. Because the company builds 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 $1,300,000 and total direct labor cost of $3,250,000. The following events occurred during August:

a.) Purchased materials on account, $450,000.

b.) Requisitioned direct materials and used direct labor in construction. Recorded the materials requisitioned on Job Cost Sheets. Direct Materials Direct Labor House 402 $51,000 $43,000 House 403 66,000 36,000 House 404 63,000 57,000 House 405 83,000 52,000

c.) The company incurred total wages of $250,000. Use the data from the table above to assign the wages. Wages are not yet paid. (HINT: Use Wages Payable.)

d.) Depreciation of construction equipment, $6,800.

e.) Other overhead costs incurred: Equipment rentals paid in cash, $34,000; Worker liability insurance expired, $8,000.

f.) Allocated overhead to jobs.

g.) Houses completed: 402 and 404.

h.) House sold on account: 404 for $230,000.

REQUIREMENTS:

1.) Calculate Carr's predetermined overhead allocated rate for the year.

2.) Prepare journal entries to record the events in the general journal.

3.) Open T-accounts for Work-in-Process Inventory and Finished Goods Inventory. Post the appropriate entries to these accounts. Identify each entry by letter. Determine the ending account balances, assuming the beginning balances were zero.

4.) Add the costs of the unfinished houses. Show that this total amount equals the ending balance in the Work-in-Process Inventory account.

5.) Add the cost of the completed house that has not yet been sold. Show that this amount equals the ending balance in Finished Goods Inventory.

6.) Compute the gross profit on the house that was sold. What costs must gross profit cover for Carr Construction?

****I need help with #4, #5, and #6 REQUIREMENTS****