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Steinbor Construction, Inc. is a home builder in Arizona Steinbom uses a job order costing system in which each house is a job. Because it

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Steinbor Construction, Inc. is a home builder in Arizona Steinbom uses a job order costing system in which each house is a job. Because it constructs houses, the company uses an account titled Construction Overhead. The company applies overhead based on estimated direct labor costs. For the year, it estimated construction overhead of $1,050,000 and total direct labor cost of $5,250,000. The following events occurred during August (Click the icon to view the events) Read the requirements Requirement 1. Calculate Steinbor's predetermined overhead allocation rate for the year Predetermined overhead allocation rate Requirement 2. Prepare journal entries to record the events in the general journal Record debits first, then credits. Exclude explanations from any journal entries) a. Purchased materials on account 5490,000 Accounts Det Credit huilder in Arizona Steinhorn uses a job order costing system in which each house O X - More Info a. Purchased materials on account, $490,000 b. Requisitioned direct materials and used direct labor in construction. Recorded the materials requisitioned. de 6 ms Direct Materials Direct Labor House 402 $ 59,000 $ 46,000 House 403 68,000 33,000 House 404 63,000 58,000 House 405 82.000 56,000 C. The company incurred total wages of $300,000. Use the data from Item b to assign the wages. Wages are not yet paid. d. Depreciation of construction equipment. $6,300 e. Other overhead costs incurred. Equipment rentals paid in cash. $30,000; Worker liability insurance expired. $9,000 f. Allocated overhead to jobs. g. Houses completed: 402 404 h. House sold on account: 404 for $240,000 er any einborn Construction, Inc. is a home builder in Arizona. Steinborn uses a job order costing system in which each house is a job. Bu ompany uses an account titled Construction Overhead. The company applies overhead based on estimated direct labor costs. For werhead of $1,050,000 and total direct labor cost of $5,250,000. The following events occurred during August: i (Click the icon to view the events.) Read the requirements b. Requisitioned direct materials and used direct labor in construction Record the materials requisitioned. Date Accounts Debit Credit c. The company incurred total wages of $300,000. Use the data from Item b to assign the wages (Assume the wages have not been paid Date Accounts Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question Steinbom Construction, Inc. is a home builder in Arizona. Steinborn uses a job order costing system in which each house is a job. Beca company uses an account titled Construction Overhead. The company applies overhead based on estimated direct labor costs. For the overhead of $1,050,000 and total direct labor cost of $5,250,000. The following events occurred during August Click the icon to view the events.) Read the requirements d. Depreciation of construction equipment, 56,300 Date Accounts Debit Credit e. Other overhead costs incurred: Equipment rentals paid in cash, 530,000; Worker liability insurance expired, 59,000 (Prepare a single jouma Date Accounts Debit Credi Choose from any list or enter any number in the input fields and then continue to the next question MInd. Je DUIT uses a JUD VII Cusung System IT WHICH ompany uses an account titled Construction Overhead. The company applies overhead based on estimated verhead of $1,050,000 and total direct labor cost of $5,250,000. The following events occurred during Augus (Click the icon to view the events.) Read the requirements. f. Allocated overhead to jobs Date Accounts Debit Credit g. Houses completed: 402, 404 Date Accounts Debit Choose from any list or enter any number in the input fields and then continue to the next question h. House sold on account: 404 for $240,000 Begin by recording the revenue from the sale on account. Do not record the expense related to the sale in this journal entry. We will do that in the next step Date Accounts Debit Credit Now record the cost of goods sold from the sale of house 404 Accounts Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question Requirement 3. T-accounts for Work-in-Process Inventory and Finished Goods Inventory have been opened for you. Post the appropriate entries to these accounts identifying each entry by letter. Determine the ending account balances, assuming that the beginning balances were zero. Click to view the journal entries you prepared above Work in Process Inventory Finished Goods Inventory Steinborn Construction, Inc. Reconciliation of Work-in-Process Inventory Subsidiary and Control Accounts Unfinished houses Direct Materials Direct Labor Construction Overhead Total cost equals Ending WIP Inventory Requirement 5. Add the costs of the completed house that has not yet been sold, and show that this Steinborn Construction, Inc. Reconciliation of Finished Goods Inventory Subsidiary and Control Accounts Completed, unsold house: Direct Materials Direct Labor Construction Overhead Total cost equals Ending Finished Goods Inventory

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