Problem 7-60 (Algo) Show Flow of Costs to Jobs (LO 7-2,3) Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential clients. An Inventory of materials and equipment is on hand at all times so that work can start as quickly as possible Special equipment is ordered as required On May 1, the Materials and Equipment Inventory account had a balance of $44,000 The Work-In-Process Inventory account is maintained to record costs of work not yet complete. There were two such jobs on May 1 with the following costs. Materials and equipment Direct labor Overhead (applied) Job 27 Highlands Mall $16,575 14,300 4,290 Job 33 Pine Ridge Estates 5 53,00 26,650 7.995 Overhead has been applied at 30 percent of the costs of direct labor During May, Kim's Asphalt started two new jobs Additional work was carried out on Jobs 27 and 33, with the latter completed and billed to Pine Ridge Estates. Details on the costs incurred on jobs during May follow Job Materials and equipment Direct labor (wages payable) 27 33 34 $3,000 $5,600 55,400 $3,700 5,300 7.550 6,70 2.400 Other May Events 1. Received $13,300 payment on Job 24 delivered to customer in April 2. Purchased materials and equipment for $10,200 on account 3. Billed Pine Ridge Estates $138,000 and received payment for $115.000 of that amount 4. Determined that payroll for indirect labor personnel totaled $730 5. Issued supplies and incidental materials for current jobs costing $235 6. Recorded overhead and advertising costs for the operation as follow all cash except equipment depreciation Property taxes Storage area rental Truck and delivery cost Advertising and promotion campaign Inspections Telephone and other miscellaneous Equipment depreciation $630 755 480 680 280 495 530 Required: . Prepare journal entries to record the flow of costs for operations during May b. Calculate the amount of over or underapplied overhead for the month c. Determine inventory balances for Materials and Equipment Inventory and Work-in-process inventory Complete this question by entering your answers in the tabs below. Required A Required B Required Prepare journal entries to record the flow of costs for operations during May (if no entry is required for a transaction/event, select "No Journal entry required" in the first account fields View transaction list View journal entry workaheet No Getieral Journal Debit Credit Transaction 1 Cash Accounts receivable 13,300 13.300 B 02 10.200 Materials and equipment inventory Accounts payable 10.200 JUTEM HOMIL F. View transaction list View journal entry worksheet No Transaction 1 General Journal Debit Credit >> 13,300 Cash Accounts receivable 13,300 B 02 10,200 Materials and equipment inventory Accounts payable 10,200 3a Accounts receivable Sales revenue 138,000 138,000 D D 3b Cash Accounts receivable 115,000 115,000 > E 04 730 Manufacturing overhead--Indirect labor Wages payable 730 F 05 235 Manufacturing overhead Materials and equipment inventory 235 G 06 Manufacturing overhead Selling costs-Advertising Cash 680 Equipment depreciation 530 Required: a. Prepare journal entries to record the flow of costs for operations during May b. Calculate the amount of over- or underapplied overhead for the month. c. Determine inventory balances for Materials and Equipment Inventory and Work-in-process inventory Complete this question by entering your answers in the tabs below. Required A Required B Required Calculate the amount of over- or underapplied overhead for the month. Storage area rental Truck and delivery cost Advertising and promotion campaign Inspections Telephone and other miscellaneous Equipment depreciation 755 400 680 280 485 53e Required: a. Prepare journal entries to record the flow of costs for operations during May b. Calculate the amount of over- or underapplied overhead for the month c. Determine inventory balances for Materials and Equipment Inventory and Work-in-process inventory Complete this question by entering your answers in the tabs below. Required A Required Required Determine Inventory balances for Materials and Equipment Inventory and Work-in-process inventory. Materials and equipment inventory Work in process inventory