Sunrise Construction, Inc. is a home builder in Arizona. Sunrise uses a job order costing system in which each house is a job. Because it constructs houses, the company uses an account titied Construction Overhead. The company applies overhead based on estimated direct labor costs. For the year, it estimated construction overhead of $1,100,000 and total direct labor cost of $2,200,000. The following events occurred during August (Click the icon to view the events.) Read the requirements h. House sold on account: 404 for $200,000 Begin by recording the revenue from the sale on account. Do not record the expense related to the sale in this joumal entry. We will do that in the next step Requirements Date Debit 1. Calculate Sunnise's predetermined overhead allocation rate for the year 2. Prepare journal entries to record the events in the general journal 3. T-accounts for Work-in-Process Inventory and Finished Goods Inventory have been h. Accounts Receivable 200,000 Sales Revenue 200,000 opened tor you. Post the appropriate entries to these accounts, identitying each entry by letter. Determine the ending account balances, assuming that the beginning balances were zero. 4. Add the costs of the unfinished houses, and show that this total amount equals the 5. Add the costs of the completed house that has not yet been sold, and show that this 6. Compute gross profit on the house that was sold. What costs must gross profit cover ending balance in the Work-in-Process Inventory account equals the ending balance in Finished Goods Inventory. for Sunrise Construction? Now record the cost of goods sold trom the sale of house 404 Date Accounts Debit Credit h. Cost of Goods Sold Finished Goods Inventory Print Done