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 $36,000 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 Highlands MallJob 33 Pine Ridge EstatesMaterials and equipment$15,375$52,500Direct labor13,50026,250Overhead (applied)4,0507,875 Overhead has been applied at 30 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 Job27333435Materials and equipment$3,000$4,800$4,600$2,900Direct labor (wages payable)4,5006,7505,9001,600 Other May Events Received $12,500 payment on Job 24 delivered to customer in April Purchased materials and equipment for $9,400 on account Billed Pine Ridge Estates $130,000 and received payment for $75,000 of that amount Determined that payroll for indirect labor personnel totaled $650 Issued supplies and incidental materials for current jobs costing $155 Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation) Property taxes$550Storage area rental675Truck and delivery cost320Advertising and promotion campaign600Inspections200Telephone and other miscellaneous325Equipment depreciation450 Required a Prepare journal entries to record the flow of costs for operations during May (If no entry is required for a transaction event, select No journal entry required in the first account field ) b Calculate the amount of over or underapplied overhead for the month c Determine inventory balances for Materials and Equipment Inventory and Work in Process Inventory

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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

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 $36,000. 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

Highlands MallJob 33

Pine Ridge EstatesMaterials and equipment$15,375$52,500Direct labor13,50026,250Overhead (applied)4,0507,875

Overhead has been applied at 30 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:

Job27333435Materials and equipment$3,000$4,800$4,600$2,900Direct labor (wages payable)4,5006,7505,9001,600

Other May Events

Received $12,500 payment on Job 24 delivered to customer in April.
Purchased materials and equipment for $9,400 on account.
Billed Pine Ridge Estates $130,000 and received payment for $75,000 of that amount.
Determined that payroll for indirect labor personnel totaled $650.
Issued supplies and incidental materials for current jobs costing $155.
Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation):

Property taxes$550Storage area rental675Truck and delivery cost320Advertising and promotion campaign600Inspections200Telephone and other miscellaneous325Equipment depreciation450

Required:

a.Prepare journal entries to record the flow of costs for operations during May.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b.Calculate the amount of over- or underapplied overhead for the month.

c.Determine inventory balances for Materials and Equipment Inventory and Work-in-Process Inventory.