Meadow Homes manufactures prefabricated chalets in Colorado. The company uses a perpetual inventory system and a job cost system in which each chalet is a job. The following events occurred during May: (Click the icon to view the events.) Read the requirements. 0 Requirements 1. Record the preceding events in the general journal. 2. Post the appropriate entries to the T-accounts, identifying each entry by letter. Determine the ending account balances, assuming that the beginning balances were zero. 3. Summarize the job costs of the unfinished chalet and show that this equals the ending balance in Work in Process Inventory 4. Summarize the job cost of the completed chalet that has not yet been sold and show that this equals the ending balance in Finished Goods Inventory. 5. Compute the gross profit on each chalet that was sold. What costs must the gross profit cover for Meadow Homes? Print Done Requirement 1. Record the events in the general journal. (Record debits first, then credits. Exclude explanations from any journal entries.) Start with the entry from event (a). Purchased materials on account, $430,000. Journal Entry Date Accounts Debit Credit (b) incurred total manufacturing wages of $112.000, which included both direct labor and indirect labor Journal Entry Date Accounts Debit Credit (c) Requisitioned direct materials in manufacturing Journal Entry Date Accounts Debit Credit (d) Depreciation of manufacturing equipment used on different chalets, 56,300. Journal Entry Date Accounts Debit Credit (e) Other overhead costs incurred on Chalets 1316. Journal Entry Date Accounts Debit Credit (f) Allocated overhead to jobs at the predetermined rate of 60% of direct labor cost. Journal Entry Date Accounts Debit Credit () Chalets completed: 13, 15, and 18. Journal Entry Date Accounts Debit Credit (h) Chalets sold on account: 13 for $98,000 and 16 for $148,000. First record the sale of the chalets. Journal Entry Date Accounts Debit Credit Next, record the cost of goods sold. Journal Entry Date Accounts Debit Credit Requirement 2. Post the appropriate entries to the T-accounts, identifying each entry by letter. Determine the ending account balances, assuming that the beginning balances were zero. Identify the ending account balance with the "Bal" reference on the applicable side of the account. Work in Process Inventory Finished Goods Inventory Requirement 3. Summarize the job costs of the unfinished chalet and show that this equals the ending balance in Work in Process Inventory. Add the costs of the unfinished chalet, and show that this total amount equals the ending balance in the Work in Process Inventory account Meadow Homes Reconciliation of Work in Process Inventory Subsidiary and Control Accounts Unfinished chalet: Direct materials Direct labor Manufacturing overhead (60% of labor) Total cost equals Work in Process balance Requirement 4. Summarize the job cost of the completed chalet that has not yet been sold and show that this equals the ending balance in Finished Goods Inventory. Meadow Homes Reconciliation of Finished Goods Inventory Subsidiary and Control Accounts Completed, unsold chalet: Direct materials Direct labor Manufacturing overhead (60% of labor) Total cost equals Finished Goods balance Requirement 5. Compute the gross profit on each chalet that was sold. What costs must the gross profit cover for Meadow Homes? Begin by determining which costs must be included to compute gross profit for Meadow Homes The gross profit must cover these types of costs: (Complete all answer boxes.) Now compute the gross profit for each chalet sold. Meadow Homes Gross Profit on Chalets Sold In May Less: Gross profit Meadow Homes manufactures prefabricated chalets in Colorado. The company uses a perpetual inventory system and a job cost system in which each chalet is a job. The following events occurred during May: (Click the icon to view the events.) Read the requirements. 0 Requirements 1. Record the preceding events in the general journal. 2. Post the appropriate entries to the T-accounts, identifying each entry by letter. Determine the ending account balances, assuming that the beginning balances were zero. 3. Summarize the job costs of the unfinished chalet and show that this equals the ending balance in Work in Process Inventory 4. Summarize the job cost of the completed chalet that has not yet been sold and show that this equals the ending balance in Finished Goods Inventory. 5. Compute the gross profit on each chalet that was sold. What costs must the gross profit cover for Meadow Homes? Print Done Requirement 1. Record the events in the general journal. (Record debits first, then credits. Exclude explanations from any journal entries.) Start with the entry from event (a). Purchased materials on account, $430,000. Journal Entry Date Accounts Debit Credit (b) incurred total manufacturing wages of $112.000, which included both direct labor and indirect labor Journal Entry Date Accounts Debit Credit (c) Requisitioned direct materials in manufacturing Journal Entry Date Accounts Debit Credit (d) Depreciation of manufacturing equipment used on different chalets, 56,300. Journal Entry Date Accounts Debit Credit (e) Other overhead costs incurred on Chalets 1316. Journal Entry Date Accounts Debit Credit (f) Allocated overhead to jobs at the predetermined rate of 60% of direct labor cost. Journal Entry Date Accounts Debit Credit () Chalets completed: 13, 15, and 18. Journal Entry Date Accounts Debit Credit (h) Chalets sold on account: 13 for $98,000 and 16 for $148,000. First record the sale of the chalets. Journal Entry Date Accounts Debit Credit Next, record the cost of goods sold. Journal Entry Date Accounts Debit Credit Requirement 2. Post the appropriate entries to the T-accounts, identifying each entry by letter. Determine the ending account balances, assuming that the beginning balances were zero. Identify the ending account balance with the "Bal" reference on the applicable side of the account. Work in Process Inventory Finished Goods Inventory Requirement 3. Summarize the job costs of the unfinished chalet and show that this equals the ending balance in Work in Process Inventory. Add the costs of the unfinished chalet, and show that this total amount equals the ending balance in the Work in Process Inventory account Meadow Homes Reconciliation of Work in Process Inventory Subsidiary and Control Accounts Unfinished chalet: Direct materials Direct labor Manufacturing overhead (60% of labor) Total cost equals Work in Process balance Requirement 4. Summarize the job cost of the completed chalet that has not yet been sold and show that this equals the ending balance in Finished Goods Inventory. Meadow Homes Reconciliation of Finished Goods Inventory Subsidiary and Control Accounts Completed, unsold chalet: Direct materials Direct labor Manufacturing overhead (60% of labor) Total cost equals Finished Goods balance Requirement 5. Compute the gross profit on each chalet that was sold. What costs must the gross profit cover for Meadow Homes? Begin by determining which costs must be included to compute gross profit for Meadow Homes The gross profit must cover these types of costs: (Complete all answer boxes.) Now compute the gross profit for each chalet sold. Meadow Homes Gross Profit on Chalets Sold In May Less: Gross profit
