Case Construction Company, a three-year-old business, provides contracting and construction services to a variety of clients. Given that each construction job is different from any other, company accountant Susan Kalagnanam decided that it was best to use a job- order costing system to allocate costs to the different jobs. She decided to use construction labour-hours as the basis for overhead allocation. In December 2020, she estimated the following amounts for the year 2021: Direct materials Construction labour Overhead Construction labour-hours Kalagnanam recorded the following for the first quarter of 2021 for the three jobs that the company started and completed during the quarter: Direct materials Construction labour-hours $13,395,200 8,165,000 8,847,700 460,000 Direct Material Construction Labour Overhead Total cost $ School Residential $753,500 $904, 200 62,100 36,800 Required: 1. Compute the cost of each job using the current system of cost allocation. (Round intermediate calculations to 2 decimal places.) School Residential 0 $ Cinema $1,356,300 16,100 0 $ Cinema 0

Case Construction Company, a three-year-old business, provides contracting and construction services to a variety of clients. Given that each construction job is different from any other, company accountant Susan Kalagnanam decided that it was best to use a job- order costing system to allocate costs to the different jobs. She decided to use construction labour-hours as the basis for overhead allocation. In December 2020, she estimated the following amounts for the year 2021: Direct materials Construction labour Overhead Construction labour-hours Kalagnanam recorded the following for the first quarter of 2021 for the three jobs that the company started and completed during the quarter: Direct materials Construction labour-hours $13,395,200 8,165,000 8,847,700 460,000 Direct Material Construction Labour Overhead Total cost $ School Residential $753,500 $904, 200 62,100 36,800 Required: 1. Compute the cost of each job using the current system of cost allocation. (Round intermediate calculations to 2 decimal places.) School Residential 0 $ Cinema $1,356,300 16,100 0 $ Cinema 0

Name: Case Construction Company, a three-year-old business, provides contra
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Description: Case Construction Company, a three-year-old business, provides contracting and construction services to a variety of clients. Giventhat each construction job is different from any other, company accountant Susan Kalagnanam decided that it was best t

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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