Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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 $54,000. 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 33 $ 54,300 Job 27 Highlands Mall Pine Ridge Estates Materials and equipment Direct labor Overhead (applied) $18,075 15,300 4,590 27,150 8,145 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. Job 27 Materials and equipment Direct labor (wages payable) 33 35 $4,800 $6,600 $6,400 $4,700 6,300 8,550 7,700 3,400 34 Other May Events 1. Received $14,300 payment on Job 24 delivered to customer in April. 2. Purchased materials and equipment for $11,200 on account. 3. Billed Pine Ridge Estates $148,000 and received payment for $140,000 of that amount. 4. Determined that payroll for indirect labor personnel totaled $830. 5. Issued supplies and incidental materials for current jobs costing $335. 6. Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Theory and Analysis Text and Cases

Authors: Richard G. Schroeder, Myrtle W. Clark, Jack Cathey

11th edition

9781118806500, 1118582799, 1118806506, 978-1118582794

More Books

Students also viewed these Accounting questions

Question

What is t he principle of motor?

Answered: 1 week ago