Sherborn Homes manutactures profabricated chalets in Colorado. The company vees a perpetual inventory nystem and a job cost systeen in which each chaser is a job. The following eventi occured uming May: (i) (Click the icen to view the events.) Read the egavingmarts. Requirements 1. Fecord the preceding events in the general journal 2. Post the apgropriale eatriss to the T-acoounts, identitying each entry by letter. Detarmine the ending acccumt balances, assuming that the beginning balances wete zaro. 3. Sumenarize the job costs of the unfilshed chalef and ahow that this oquals the ending balance in Work in Process invantary 4. Summarize the job cost at the comploted chalet that has not yet been sold and show that tha equads the ending balanco in Finisbed Goods Invontory 5. Computo the groes proft on each chalot that was sold. What oosts must the gross proff cover tor Sherbor Homes? (c) Requasioned direct reateriels in manufacturng More info a. Purchased materials on acoount $440.000. b. Incurred total manufacturing wages of $119,000, which included both dreet labor and indiect labor. Usod dreet labor in manulacturing as follows: ring as follows: (bation of manulacturing equipment used on diflerent chalote, $6,7% : e. Other overhead costs incurred on Chalots 1316. 3. Chales overnead 10 jobs at the predetermined rale of 60% of drect labor cont. 9. Chalets oomplelod: 13,15 , and 16 . h. Chalots sold on account 13 for $90,000 and 16 for $149,000. Requirement 1. Record the events in the general journal. (Record debits first, then credits. Exclude explanations from any joumal entries.) Start with the entry from event (a). Purchased materials on account, $440,000. (b) Incurred total manufacturing wages of $119,000, which included both direct labor and indirect labor (c) Requisitioned direct materials in manufacturing. (u) vepreciation of manufacturing equipment used on (e) Other overhead costs incurred on Chalets 13-16. (g) Chalets completed: 13,15 , and 16. (h) Chalets sold on account: 13 for $90,000 and 16 for $149,000. First record the sale of the chale (h) Chalets sold on account: 13 for $90,000 and 16 for $149,000. First record the sale of the chalets. Next, record the cost of goods sold. Reyuirement 2. Post the appropriate entries to the T-accounts, identifying each entry by letter. Determine the en andinn armuint halanno with tha "Rol" raforanno nn tha annlinahlo cino of the Fliad the reoliternents sending mcceunt baience with the 'Baf" rederence en the applciatie side of the kcount. Werk in Process innaentery Finisheil Geodi inventery Hherborn Homus Recaneiliation of Work in Preceas fivdetocy fubsidiary and Controf Acceunta Lintrished charet: Qirest materials Erect lates (D) Time flemaining ofestis Wext Feosd the recquientichet. Sherborn Homes Roconelitation of Finished Goods Inventory subaldiary and Contral Anemunt. Requirement 5. Compute the grose profi on each chaiet that was sold What cots must the arose profit cover for Shechiom Homes? Begin by determining wfich costs must be included to cempute gross profit for Sheboen Hornes The grosi probt must ecred thase byes of costs: (Complete al rout fiolds) Tceal tost equals Finished Coods batance Requirement 5. Compote the gross peoft os eoch chalet that was sold. What coste mast the iross praft cover for therbom 1 tom es? Pegin by debermining atich cots miust be induded to conipule gross profa for 5 heborn Homes The groes profit muat eqver these types of costs: (Compleie at inout fielits) Now compule tha fross profit for each chalet sold
