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Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential cliets. An inventory of materials and equipment is on hand at all times so that work can start as quickly as possible. Special equipment is ordere as required. On May 1, the Materials and Equipment Inventory account had a balance of $44.000. The Work-in-Process Inventory account is maintained to record costs of work not yet complete. There were two such jobs on May 1 with the following costs. Haterials and equipment Direct labor overhead (applied) Job 27 Highlands Mall $16,575 14,300 4,290 Job 33 Pine Ridge Estates $ 53,300 26,650 7,995 Overhead has been applied at 30 percent of the costs of direct labor. During May, Kim's Asphalt started two new jobs. Additional work was carried out on Jobs 27 and 33. with the latter completed and billed to Pine Ridge Estates. Details on the costs incurred on jobs during May follow.

Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential cliets. An inventory of materials and equipment is on hand at all times so that work can start as quickly as possible. Special equipment is ordere as required. On May 1, the Materials and Equipment Inventory account had a balance of $44.000. The Work-in-Process Inventory account is maintained to record costs of work not yet complete. There were two such jobs on May 1 with the following costs. Haterials and equipment Direct labor overhead (applied) Job 27 Highlands Mall $16,575 14,300 4,290 Job 33 Pine Ridge Estates $ 53,300 26,650 7,995 Overhead has been applied at 30 percent of the costs of direct labor. During May, Kim's Asphalt started two new jobs. Additional work was carried out on Jobs 27 and 33. with the latter completed and billed to Pine Ridge Estates. Details on the costs incurred on jobs during May follow.

FINANCIAL ACCOUNTING
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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1 Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential clients. An inventory of materials and equipment is on hand at all times so that work can start as quickly as possible. Special equipment is ordered as required. On May 1, the Materials and Equipment Inventory account had a balance of $44.000. The Work-in-Process Inventory account is maintained to record costs of work not yet complete. There were two such jobs on May 1 with the following costs. Job 27 Job 33 Highlands Mal1 $16,575 14,300 4,290 Pine Ridge Estates $ 53,300 26,658 7,995 Materials and equipment Direct labor Overhead (applied) Overhead has been applied at 30 percent of the costs of direct labor. During May, Kim's Asphalt started two new jobs. Additional work was carried out on Jobs 27 and 33. with the latter completed and billed to Pine Ridge Estates. Details on the costs incurred on jobs during May follow. Job Materials and equipment Direct labor (wages payable) 27 33 34 35 $3,800 $5,68e 5,300 7,550 $5,400 $3,700 6,700 2,488 Other May Events 1. Received $13.300 payment on Job 24 delivered to customer in April. 2. Purchased materials and equipment for $10,200 on account. 3. Billed Pine Ridge Estates $138,000 and received payment for $115.000 of that amount. 4. Determined that payroll for indirect labor personnel totaled $730. 5. Issued supplies and incidental materials for current jobs costing $235. 6. Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation). Property taxes storage area re Truck and delivery cost Advertising and promotion campaign Inspections Telephone and other miscellaneous Equipment depreciation $630 755 400 680 280 405 530
Transcribed Image Text:1 Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential clients. An inventory of materials and equipment is on hand at all times so that work can start as quickly as possible. Special equipment is ordered as required. On May 1, the Materials and Equipment Inventory account had a balance of $44.000. The Work-in-Process Inventory account is maintained to record costs of work not yet complete. There were two such jobs on May 1 with the following costs. Job 27 Job 33 Highlands Mal1 $16,575 14,300 4,290 Pine Ridge Estates $ 53,300 26,658 7,995 Materials and equipment Direct labor Overhead (applied) Overhead has been applied at 30 percent of the costs of direct labor. During May, Kim's Asphalt started two new jobs. Additional work was carried out on Jobs 27 and 33. with the latter completed and billed to Pine Ridge Estates. Details on the costs incurred on jobs during May follow. Job Materials and equipment Direct labor (wages payable) 27 33 34 35 $3,800 $5,68e 5,300 7,550 $5,400 $3,700 6,700 2,488 Other May Events 1. Received $13.300 payment on Job 24 delivered to customer in April. 2. Purchased materials and equipment for $10,200 on account. 3. Billed Pine Ridge Estates $138,000 and received payment for $115.000 of that amount. 4. Determined that payroll for indirect labor personnel totaled $730. 5. Issued supplies and incidental materials for current jobs costing $235. 6. Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation). Property taxes storage area re Truck and delivery cost Advertising and promotion campaign Inspections Telephone and other miscellaneous Equipment depreciation $630 755 400 680 280 405 530
Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare journal entries to record the flow of costs for operations during May. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet E F Record transfer of Job 33. Note: Enter debits before credits. Transaction General Journal Debit Credit 08 Record entry Clear entry View general journal
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare journal entries to record the flow of costs for operations during May. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet E F Record transfer of Job 33. Note: Enter debits before credits. Transaction General Journal Debit Credit 08 Record entry Clear entry View general journal
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