Predetermined overhead Estimated overhead cost Estimated direct labor cost allocation rate %3D 1,400,000 3,500,000 40 Requirement 2. Prepare joumal entries to recond the events in the general joumal (Record debits first then credits. Exclude explanations from any journal entries) a. Purchased materials on account, $410,000. Date Debit Accounts Credit Raw Materials Inventory 410,000 a. Accounts Payable 410,000 b. Requisitioned direct materials and used direct labor in construction. Record the materials requisitioned Debit Credit Date Accounts Work-in-Process Inventory 271,000 b. Raw Materials Inventory 271,000 C. The company incured total wages of $250,000. use the data from tem b to assign the wages. (Assume the wages have not been paid) Debit Credit t Date Accounts Work-in-Process Inventory 197,000 c. Construction Overhead 53,000 250,000 Wages Payable d. Depreciation of construction equpment, $6,700 Accounts Debit Credit Date Construction Overhead 6,700 d. Accumulated Depreciation-Equipment 6,700 e. Other overthead costs incurred: Equipment rentais paid in cash, $30,000; woriker lisbility insurance expired. $7,000. (Prepare a singie journal entry for this event) Debit Credit Date Accounts Construction Overhead 37,000 e. Prepaid Insurance 7,000 Cash 30,000 E. Allocated overhead to jobs Credit Debit Date Accounts f. i More Info Purchased materials on account, $410,000 a. b. Requisitioned direct materials and used direct labor in construction. Recorded the materials requisitioned. Direct Materials Direct Labor 49,000 52,000 $ House 402 House 403 69,000 39,000 64,000 58,000 House 404 86,000 House 405 51,000 c. The company incurred total wages of $250,000. Use the data from Item b to assign the wages. Wages are not yet paid. d. Depreciation of construction equipment, $6,700 e. Other overhead costs incurred: Equipment rentals paid in cash, $30,000; Worker liability insurance expired, $7,000. f. Allocated overhead to jobs. g. Houses completed: 402, 404 h. House sold on account: 404 for $240,000 Print Done

Predetermined overhead Estimated overhead cost Estimated direct labor cost allocation rate %3D 1,400,000 3,500,000 40 Requirement 2. Prepare joumal entries to recond the events in the general joumal (Record debits first then credits. Exclude explanations from any journal entries) a. Purchased materials on account, $410,000. Date Debit Accounts Credit Raw Materials Inventory 410,000 a. Accounts Payable 410,000 b. Requisitioned direct materials and used direct labor in construction. Record the materials requisitioned Debit Credit Date Accounts Work-in-Process Inventory 271,000 b. Raw Materials Inventory 271,000 C. The company incured total wages of $250,000. use the data from tem b to assign the wages. (Assume the wages have not been paid) Debit Credit t Date Accounts Work-in-Process Inventory 197,000 c. Construction Overhead 53,000 250,000 Wages Payable d. Depreciation of construction equpment, $6,700 Accounts Debit Credit Date Construction Overhead 6,700 d. Accumulated Depreciation-Equipment 6,700 e. Other overthead costs incurred: Equipment rentais paid in cash, $30,000; woriker lisbility insurance expired. $7,000. (Prepare a singie journal entry for this event) Debit Credit Date Accounts Construction Overhead 37,000 e. Prepaid Insurance 7,000 Cash 30,000 E. Allocated overhead to jobs Credit Debit Date Accounts f. i More Info Purchased materials on account, $410,000 a. b. Requisitioned direct materials and used direct labor in construction. Recorded the materials requisitioned. Direct Materials Direct Labor 49,000 52,000 $ House 402 House 403 69,000 39,000 64,000 58,000 House 404 86,000 House 405 51,000 c. The company incurred total wages of $250,000. Use the data from Item b to assign the wages. Wages are not yet paid. d. Depreciation of construction equipment, $6,700 e. Other overhead costs incurred: Equipment rentals paid in cash, $30,000; Worker liability insurance expired, $7,000. f. Allocated overhead to jobs. g. Houses completed: 402, 404 h. House sold on account: 404 for $240,000 Print Done

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Description: partial credit,P17-30A (similar to) Question Help DivineDivine Construction, Inc. is a home builder in Arizona. DivineDivine uses a job order costing system in which each house is a job. Because it constructs houses, the company uses an account ti

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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