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 applies overhead based i (Click the icon to view the events.) Read the requirements. Requirement 4. Add the costs of the unfinished houses, and show that this total amount equals the ending balance in the Work-in-Process Inventory account. Meadow Construction, Inc. Reconciliation of Work-in-Process Inventory Subsidiary and Control Accounts Total WIP Balance 0 More Info - X Unfinished houses: Direct Materials Direct Labor Construction Overhead a. Purchased materials on account, $450,000 b. Requisitioned direct materials and used direct labor in construction Recorded the materials requisitioned. 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 equals the ending balance in Finished Goods Inventory Meadow Construction, Inc. Reconciliation of Finished Goods Inventory Subsidiary and Control Accounts Completed, unsold house: Direct Materials Direct Labor Direct Materials Direct Labor House 402 $ 52,000 $ 47.000 House 403 67,000 38.000 House 404 83,000 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 Construction Overhead Total cost equals Ending Finished Goods Inventory Requirement 6. Compute gross profit on the house that was sold. What costs must gross profit cover for Meadow Construction? Meadow Construction, Inc. Gross profit on Homes Sold In August Print Done Gross profit What costs must gross profit cover for Meadow Construction? The gross profit must cover these types of costs: Choose from any list or enter any number in the input fields and then continue to the next question. Save for Later