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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

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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 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. Materials and equipment Direct labor Overhead (applied) 3b 27 Highlands Hall $15,375 13,500 4,050 Job 33 Pine Ridge Estates 5.52,500 26,250 7,875 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. Detalls on the costs incurred on Jobs during May follow. 30b Materials and equipment Direct lobor ( wes payable) 27 $3,000 4,500 33 $4,500 6,750 34 $4,600 5,900 35 $2,900 1,600 Other May Events 1. Received $12.500 payment on Job 24 delivered to customer in April 2. Purchased materials and equipment for $9.400 on account 3. Billed Pine Ridge Estates $130,000 and received payment for $75,000 of that amount 4. Determined that payroll for indirect labor personnel totaled $650. 5. Issued supplies and incidental materials for current jobs costing $155. 6. Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation), Required: a. Prepare Journal entries to record the flow of costs for operations during May. 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 Complete this question by entering your answers in the tabs below. Required A Required B Required 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) View transaction list Journal entry worksheet A E G H Required: a. Prepare Journal entries to record the flow of costs for operations during May 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. Complete this question by entering your answers in the tabs below. Required A Required B Required Calculate the amount of over- or underapplied overhead for the month. Overapplied overhead

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