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Renovations Inc. performs home remodeling work. In February they worked on three jobs and applied job-costing procedures, Record the transactions in the T-accounts below... a)
Renovations Inc. performs home remodeling work. In February they worked on three jobs and applied job-costing procedures, Record the transactions in the T-accounts below... a) Direct Materials (DM) worth $12,000 were purchased on account b) Direct Materials were charged to the following jobs - DM requisitioned i. $3200 to Job 13 ii. $4200 to job 14 c) Direct Labor charged to the following jobs - DL costs incurred i. S4300 to Job 13 ii. $3200 to Job 14 d) $14000 in Indirect Expenses (Overhead) Incurred e) Applied overhead at a rate of 150% of direct materials cost f) Completed the following jobs and transferred to finished goods i. Job 13 for $9000 ii. Job 14 for $13,000 g) Sold Job 13 for $12,000 and Job 14 for $15,000 both for cash h) Closed Overhead account. Any over- or under-applied overhead is directly written off to Cost of Goods Sold (COGS). For the following accounts record the transactions above, Label each transaction with the corresponding letter (a)-(h). Direct Material Inventory Finished Goods Inventory Accrued Payroll WIP Inventory COGS Cash Overhead Accounts Payable Revenue
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