ompany Arizona. Meadow uses a P19-36B Accounting for transactions, construction c Meadow Construction, Inc. is a home builder in costing system in which each house is a job. Because it constrt pany uses an account titled Construction Overhead. The companu based on estimated direct labor costs. For the year, it estimated c head of $1,150,000 and total direct labor costs of $5,750,000, The stru occurred during August: a. Purchased materials on account, $450,000. b. Requisitioned direct materials and used direct labor in constructi Learning Objectives 2, 3, 4 tructs houses, the . WIP Bal. $260,600 mpany applies Ovd 0p ct ollowing event materials requisitioned. House 402 House 403 House 404 House 405 Direct Materials $ 52,000 67,000 63,000 88,000 Direct Labor 47,000 36,000 54,000 52,000 1055 pany incurred total wages of $240,000. Use the data from Item b to Job Order Costing the wages. Wages are not yet paid. cia tion of construction equipment, $6,300. overhcad costs incurred Equipment rentals paid in cash,S$40,00, Worker Other o liability insurance expired, $5,000. Allocated overhead to jobs. Houses completed: 402, 404. c- House sold on account: 404 for $250,000. Requirements Calculate Meadow's predetermined overhead allocation rate for the year. Prepare journal entries to record the events in the general journal. nTaccounts for Work-in-Process Inventory and Finished Goods Inventory Dost the appropriate entries to these accounts, identifying each entry by letter. 3. Open T-acc rmine the ending account balances, assuming that the beginning balances were zero Add the costs of the unfinished houses, and show that this total amount equals the ending balance in the Work-in-Process Inventory account. d the cost of the completed house that has not yet been sold, and show that this equals the ending balance in Finished Goods Inventory. 6. Compute gross profit on the house that was sold. What costs must gross profit cover for Meadow Construction