Please assist with letters H and I on problem "A" and problem "C". Much appreciated;
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 $56,000. 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. Materials and equipment Direct labor Overhead (applied) Job 27 Highlands Mall $18,375 15,500 4,650 Job 33 Pine Ridge Estates $ 54,500 27,250 8,175 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 Materials and equipment Direct labor (wages payable) 27 33 34 35 $5,000 $6,800 $6,600 $4,900 6,500 8,750 7,900 3,600 Other May Events 1. Received $14,500 payment on Job 24 delivered to customer in April. 2. Purchased materials and equipment for $11,400 on account. 3. Billed Pine Ridge Estates $150,000 and received payment for $145,000 of that amount. 4. Determined that payroll for indirect labor personnel totaled $850. 5. Issued supplies and incidental materials for current jobs costing $355. 6. Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation). Property taxes Storage area rental Truck and delivery cost Advertising and promotion campaign Inspections Telephone and other miscellaneous Equipment depreciation $750 875 520 800 400 525 650 Required: a. Prepare journal entries to record the flow of costs for operations during May. b. Calculate the amount of over- or underapplied overhead for the month. c. Determine inventory balances for Materials and Equipment Inventory and Work-in-process inventory. A Record $14,500 payment received on account. B Record purchase of materials and equipment of $11,400 on account. Record billing of $150,000. Record receipt of $145,000 towards the billings. @ Record indirect labor cost of $850. Record issue of supplies and incidental materials for current jobs costing $355. G Record overhead, advertising and depreciation cost as G Record overhead, advertising and depreciation cost as per the table given above. H Record charges to work in process. I Record transfer of Job 33. A 1. Cash 14,500 Accounts receivable 14,500 B 02 11,400 Materials and equipment inventory Accounts payable 11,400 Accounts receivable 150,000 Sales revenue 150,000 D 3b Cash 145,000 Accounts receivable 145,000 > E 04 850 Manufacturing overheadIndirect labor Wages payable 850 F 05 355 Manufacturing overhead Materials and equipment inventory 355 G 06 3,720 800 Manufacturing overhead Selling costsAdvertising Cash Accumulated depreciation oooo 3,870 650 Required A Required B Required C Calculate the amount of over- or underapp Overapplied overhead $ 3,100 Required A Required B Required c Determine inventory balances for Materials and Equipn $ 43,745 Materials and equipment inventory Work-in-process inventory
