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Prepare journal entries for the preceding information

Birmingham Contractors uses a job order costing system. In May 2013, the company made a $3,300,000 bid to build a pedestrian overpass over the beach highway at Gulf Shores, Alabama. Birmingham Contractors won the bid and assigned #515 to the project. Its completion date was set at December 15, 2013. The following costs were estimated for completion of the overpass: $1,240,000 for direct material, $670,000 for direct labor, and $402,000 for overhead. During July, work began on job #515; DM cost assigned to Job #515 was $121,800, and DL cost associated with it was $175,040. The firm uses a predetermined OH rate of 60 percent of DL cost. Birmingham Contractors also worked on several other jobs during July and incurred the following costs: $579,300 Direct material (including Job #515) issued 584.000 Direct labor lincluding Job #515) accrued Indirect labor accrued 55,800 Administrative salaries and wages accrued 39.600 26,400 Depreciation on construction equipment Depreciation on office equipment 7,800 11,100 Client entertainment (on accounts payable) 6,600 Advertising for firm (paid in cash) Indirect material (from supplies inventory) 18,600 Miscellaneous expenses (design-related: to be paid in the following month) 10,200 Accrued utilities (for office, $1,800 for construction $5,400) 7,200 During July, Birmingham Contractors completed several jobs that had been in process before the beginning of the month. These completed jobs sold for $1,224,000, and payment will be made to the company in August. The related job cost sheets showed costs associated with those jobs of $829,000. At the beginning of July, Birmingham Contractors had Work in Process Inventory of $871,800