The company applies overhead based on estimated direct labor costs. For the year, it estimated construction overhead of $ 1,150, 000 and total direct labor cost of $ 5, 750, 000. The following events occurred during August.

Meadow Construction, Inc. is a home builder in Arizona. Meadow 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 applie i (Click the icon to view the events.) Read the requirements. Requirement 1. Calculate Meadow's predetermined overhead allocation rate for the year. Predetermined overhead allocation rate * More Info . X Requirement 2. Prepare journal entries to record the events in the general journal. (Record debits first, then credits. Exclude explanations from any a. Purchased materials on account, $450,000. Date a. Purchased materials on account. $450.000 b. Requisitioned direct materials and used direct labor in construction Recorded the materials requisitioned. Debit Accounts Credit b. Requisitioned direct materials and used direct labor in construction. Record the materials requisitioned. Date Accounts Debit Credit Direct Materials Direct Labor House 402 $ 52.000 $ 47,000 House 403 67.000 36,000 House 404 63.000 54,000 House 405 88,000 52,000 c. The company incurred total wages of $240.000. 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, $40,000: Worker liability insurance expired. $5,000. f. Allocated overhead to jobs. g. Houses completed: 402, 404 h. House sold on account: 404 for $250.000 c. The company incurred total wages of $240,000. Use the data from Item b to assign the wages. (Assume the wages have not been paid.) Date Accounts Debit Credit Print Done d. Depreciation of construction equipment, $6.300 Date Accounts Debit Credit e. Other overhead costs incurred: Equipment rentals paid in cash, S40,000; Worker liability insurance expired. $6,000. (Prepare a single journal entry for this event.) Date Accounts Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question Save for Later