X Requirements 1. Record the preceding events in the general journal. 2. Post the appropriate entries to the T-accounts, identifying each entry by letter. Determine the ending account balances, assuming that the beginning balances were zero. 3. Summarize the job costs of the unfinished chalet and show that this equals the ending balance in Work in Process Inventory. 4. Summarize the job cost of the completed chalet that has not yet been sold and show that this equals the ending balance in Finished Goods Inventory. 5. Compute the gross profit on each chalet that was sold. What costs must the gross profit cover for Superior Homes? Print Done More Info a. Purchased materials on account, $450,000. b. Incurred total manufacturing wages of $118,000, which included both direct labor and indirect labor. Used direct labor in manufacturing as follows: Direct Labor Chalet 13.. $ 14,000 Chalet 14. $ 28,000 Chalet 15. 19,000 Chalet 16........... $ 21,800 C. Requisitioned direct materials in manufacturing as follows: $ Direct Materials Chalet 13 $ 41,700 Chalet 14 $ 56,800 Chalet 15. $ 62,800 Chalet 16.. 66,000 d. Depreciation of manufacturing equipment used on different chalets, S6,400. e. Other overhead costs incurred on Chalets 1316: Equipment rentals paid in cash......$ 10,900 Prepaid plant insurance expired.. $ 5,000 f. Allocated overhead to jobs at the predetermined rate of 60% of direct labor cost. g. Chalets completed: 13, 15, and 16. h. Chalets sold on account: 13 for $92,000 and 16 for $144,000. Requirement 1. Record the events in the general journal. (Record debits first, then credits. Exclude explanations from any journal entries.) Start with the entry from event (a). Purchased materials on account, $450,000 Journal Entry Date Accounts Debit Credit a (b) Incurred total manufacturing wages of $118,000, which included both direct labor and indirect labor. Journal Entry Accounts Date Debit Credit b. (c) Requisitioned direct materials in manufacturing. Journal Entry Date Accounts Debit Credit (d) Depreciation of manufacturing equipment used on different chalets, $6,400. Journal Entry Accounts Date Debit Credit (e) Other overhead costs incurred on Chalets 13-16. Journal Entry Accounts Date Debit Credit e (1) Allocated overhead to jobs at the predetermined rate of 60% of direct labor cost. Journal Entry Accounts Date Debit Credit f. (g) Chalets completed: 13, 15, and 16. Journal Entry Date Accounts Debit Credit g (h) Chalets sold on account: 13 for $92,000 and 16 for $144,000. First record the sale of the chalets. Journal Entry Date Accounts Debit Credit h. Next, record the cost of goods sold. Journal Entry Date Accounts Debit Credit h. Requirement 2. Post the appropriate entries to the T-accounts, identifying each entry by letter. Determine the ending account balances, assuming that the beginning balances were zero. Identify the ending account balance with the "Bal" reference on the applicable side of the account. Work in Process Inventory Finished Goods Inventory Requirement 3. Summarize the job costs of the unfinished chalet and show that this equals the ending balance in Work in Process Inventory. Add the costs of the unfinished chalet, and show that this total amount equals the ending balance in the Work in Process Inventory account. Superior Homes Reconciliation of Work in Process Inventory Subsidiary and Control Accounts Unfinished chalet: Direct materials Direct labor Manufacturing overhead (60% of labor) Total cost equals Work in Process balance Requirement 4. Summarize the job cost of the completed chalet that has not yet been sold and show that this equals the ending balance in Finished Goods Inventory. Superior Homes Reconciliation of Finished Goods Inventory Subsidiary and Control Accounts Completed, unsold chalet: Direct materials Direct labor Manufacturing overhead (60% of labor) Total cost equals Finished Goods balance Now compute the gross profit for each chalet sold. Superior Homes Gross Profit on Chalets Sold In May Less: Gross profit
