unting for acturing transactions 1. P19-31B Vacation Homes manufactures prefabricated chalets in Utah. The com- pany uses a job order costing system in which each chalet is a job. The following events occurred during May. a. Purchased materials on account, $405,000. b. Incurred manufacturing wages of $112,000. Requisitioned direct materials and used direct labor in manufacturing: Direct Materials Direct Labor Chalet 20 $41,000 $15,000 Chalet 21 56,000 29,000 Chalet 22 62,000 19,000 Chalet 23 66,000 21,000 c. Depreciation of manufacturing equipment, $20,000. d. Other overhead costs incurred on chalets 20 through 23: Indirect labor....... $28,000 Equipment rentals paid in cash. 10,400 Plant insurance expired... 6,000 c. Allocated overhead to jobs at the predetermined rate of 60% of direct labor cost. f. Chalets completed: 20, 22, and 23. g. Chalets sold: 20 for $99,000; 23 for $141,900. Requirements 1. Record the preceding events in the general journal. (p. 966) 2. Open T-accounts for Work in Process Inventory and Finished Goods Inventory. Post the appropriate entries to these accounts, identifying each entry by letter. Determine the ending account balances, assum- ing that the beginning balances were zero. (pp. 947-948) 3. Add the costs of the unfinished chalet, and show that this equals the ending balance in Work in Process Inventory. (p. 958) 4. Add the cost of the completed chalet that has not yet been sold, and show that this equals the ending balance in Finished Goods Inventory. (p. 956) 5. Compute the gross profit on each chalet that was sold. What costs must the gross profit cover for Vacation Homes