Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Waterways Continuing Problem ( This is a continuation of the Waterways Problem from Chapters 1 and 2 . ) WCP . 3 Based on the

Waterways Continuing Problem
(This is a continuation of the Waterways Problem from Chapters 1 and 2.)
WCP.3
Based on the compatibility and efficiency of its newly designed sprinkler systems, Waterways was successful in its bid to
upgrade the irrigation systems for 10 soccer fields owned by the local municipality. Three of the local installation operators
were assigned to work on the upgrades because all these employees were familiar with the new systems. At the end of the
first month of work, the following information was pulled from the work in process inventory records for the jobs that had
been started by the three groups. During the month of June, the following transactions related to the three active upgrades took place:
June 1
Requisitioned site supplies from raw materials inventoryJob SOC-01, $1,325; Job SOC-02, $860.
June 1
Annual construction liability insurance premium paid for three site crews, $18,000.
June 2
Monthly rental of small equipment for all three sites, $910.
June 3
Requisitioned site supplies from raw materials inventoryJob SOC-03, $891.
June 5
Requisitioned direct materials from raw materials inventoryJob SOC-01, $2,100; Job SOC-02, $6,000; Job SOC-03, $500.
June 15
Paid direct labour costs: Job SOC-01, $5,000; Job SOC-02, $8,000; Job SOC-03, $1,500.
June 16
Job SOC-01 completed.
June 21
Requisitioned direct materials from raw materials inventoryJob SOC-03, $3,000.
June 21
Requisitioned site supplies from raw materials inventoryJob SOC-03, $756.
June 23
Job SOC-03 completed.
June 30
Monthly depreciation on large equipment for three sites, $6,000.
June 30
Paid direct labour costs: Job SOC-02, $3,200; Job SOC-03, $7,200.
June 30
Paid salary for site supervisors, delivery driver, and site cleaners, $12,980.
June 30
Paid rent for on-site portable toilets and garbage containers for the month, $2,100.
Instructions
Using just the information provided from the work in process balances for May 31, calculate the predetermined overhead rate that Waterways has been using for its installations.
Waterways writes off any balance in the manufacturing overhead account to Cost of Goods Sold at the end of every month. Assuming that all the transactions listed above are related to the three upgrades, calculate the balance in the manufacturing overhead account at the end of June, and indicate if it is over- or under-applied.
Prepare summary journal entries to record all the transactions for the month of June. Dates and explanations are not required.
Determine the balance in the Work in Process account at the end of the month, and reconcile this balance to the jobs not completed at the end of the month.
Waterways received a contract price of $75,000 for each upgrade completed. Determine the gross profit on the completed jobs during the month of June.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting An Introduction To Concepts Methods And Uses

Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil, Sidney Davidson

7th Edition

0030259630, 978-0030259630

More Books

Students also viewed these Accounting questions

Question

How are conditional promises to give reported under FAS 116}

Answered: 1 week ago

Question

=+6 Both cats and dogs are to be tested. Should you block? Explain.

Answered: 1 week ago

Question

Problem 3: Convert the unsigned number 4276)9 to base 3

Answered: 1 week ago