Required:

1. Calculate the production costs incurred in April for each of the three jobs.

2. Make the appropriate journal entry for each of the six transactions described previously. Assume all payments will be made next month. 3. How much gross profit did Classic Boats earn from the sale of job 1?

4. Assume selling costs totaled $2,000 and general and administrative costs totaled $5,500. Prepare an income statement for Classic Boats for the month of April. (Assume there is no adjustment to cost of goods sold for underapplied or overapplied overhead.)

Problem 3: Calculating the Cost of Jobs, Making Journal Entries, and Preparing an Income Statement. (Topic B02) (25 point) Classic Boats, Inc., produces custom wood boats. Each boat is built to customer specifications. During April, its first month of operations, Classic Boats began production of three customer orders-jobs 1 through 3. The following transactions occurred during April. 1. Purchased production materials totaling $225,000 2. Processed material requisitions for the following items: Job 1, direct materials Job 2, direct materials Job 3, direct materials Indirect materials Total $ 38,800 19,300 22,500 43,500 $ 124,100 3. Processed timesheets showing the following: Job 1, direct labor (350 hours) Job 2, direct labor (275 hours) Job 3, direct labor (150 hours) Indirect labor Total $ 7,400 5,900 3,250 4,850 $ 21,400 4. Applied overhead using a predetermined rate of 160 percent of direct labor cost 5. Completed job 1 and transferred it to finished goods 6. Delivered job 1 to the customer and billed her $70,000. (Hint: Two entries are required- one for the cost of the goods and another for the revenue.)