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

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Chapter1: Financial Statements And Business Decisions
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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
$
$753,500
School Residential
$904,200
36,800
62,100
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
Transcribed Image Text: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 $ $753,500 School Residential $904,200 36,800 62,100 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
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