Question
Larrys Lawn Services provides custom landscaping for homes and businesses and uses job order costing to capture the cost of its landscaping jobs.There are no
Larrys Lawn Services provides custom landscaping for homes and businesses and uses job order costing to capture the cost of its landscaping jobs.There are no jobs in process at thebeginning of May.Listed below are data concerning the three landscaping jobs conductedduring May.
Southside. Oceanview. Rocky Heights
Direct materials $5,390. $6,930. $6,490
Landscaper labor costs. $5,070 $6,045. $5,785
Landscaper hours 78. 93. 89
Overhead costs are applied to jobs based on landscaper hours, and the predetermined overhead rate is $64 per landscaper hour.
The Southside job is the only incomplete job at theend of May.
Actual overhead for the month was $16,950.
(a)Determine the cost of each job.
(b)Indicate the balance of the Landscape Contracts in Process account at the end of May.
(c)Calculate the ending balance of the Operating Overhead account for May.
(d)During May, Larry is approached by the owner of Mountain Estates who would like tocontract with Larrys company.Larry is working to prepare the bid for Mountain Estatesand has the following information:Direct materials, $10,450 and Landscaper hours, 125hours.Analyze the financial information provided for Southside, Oceanview and RockyHeights and help Larry complete his bid by estimating the total cost of the MountainEstates job
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