per-unit profit for Job 298. P3-61B. Determine and record job costs (Learning Objectives 2, 3, 4, 86) Red Canyon 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 a. Purchased materials on account, $470,000. b. Incurred total manufacturing wages of $115,000, which included both direct labor and indirect labor. Used direct labor in manufacturing as follows: halet 13) IN K O 204 A 0 P L A All Chri Direct Labor $14,600 Enter Shutt yon Homes X C Sturdy Homes manuf. X Qmgmt 201 ch 3 more X CVeon Homes manufa: X + -4ce3-8c3a-c443f21e9b9b/pages/urn:pearson entity.dc4ec6b3-8f9e-4045-8144-5e8d6c19f562?locale=&key=18. Chalet 13 Chalet 14 Chalet 15. End of Chapter: Job Costing Direct Labor $14,600 $28,000 $19,300 $21,400 c. Requisitioned direct materials in manufacturing as follows: Chalet 16. Chalet 13 Chalet 14 Chalet 15. Chalet 16. 6 Direct Materials $41,500 $56,700 $62,700 $66,000 d. Depreciation of manufacturing equipment used on different chalets, $6,500. e. Other overhead costs incurred on Chalets 13-16: 99 L C 204 < 5 Equipment rentals paid in cash Prepaid plant insurance expired End of Chapter: Job Costing $10,000 $ 6,000 f. Allocated overhead to jobs at the predetermined rate of 60% of direct labor cost. g. Chalets completed: 13, 15, and 16. h. Chalets sold on account: 13 for $93,000; 16 for $144,000. Requirements Requirements 1. Record the events in the general journal. 2. Open T-accounts for Work in Process Inventory and Finished Goods Inventory. 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 cost of the unfinished chalet, and show that this total amount equals the ending balance in the Work in Process Inventory account. 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 gross profit on each chalet that was sold. What costs must gross profit cover for Red Canyon Homes? 205 C