help 4. Add the costs of the unfinished houses, and show that this total amountequals the ending balance in the Work-in-Process Inventory account.5. Add the costs of the completed house that has not yet been sold, and showthat this equals the ending balance in Finished Goods Inventory.6. Compute gross profit on the house that was sold. What costs must grossprofit cover for Sherborn Construction? Sherborn Construction, Inc. is a home builder in Arizona. Sherborn uses a job order costing system in which eachhouse is a job. Because constructs houses, the company uses an account titled Construction Overhead. Thecompany applies overhead based on estimated direct labor costs. For the year, it estimated construction overhead of$1,350,000 and total direct labor cost of $2,700,000. The following events occurred during August:i (Click the icon to view the events.)Read the requirements.Requirement 1. Calculate Sherborn's predetermined overhead allocation rate for the year.House 402House 403House 404House 405+a. Purchased materials on account, $480,000b. Requisitioned direct materials and used direct labor in construction. Recorded the materials requisitioned.Direct Materials Direct Labor$57,000 $67,00066,00087,000Predetermined overheadallocation rate49,00037,00055,00053,000c. The company incurred total wages of $300,000. Use the data from Item b to assign the wages. Wages are not yet paid.d. Depreciation of construction equipment, $6,400e. Other overhead costs incurred: Equipment rentals paid cash, $32,000; Worker liability insurance expired, $4,000.f. Allocated overhead to jobs.g. Houses completed: 402, 404h. House sold on account: 404 for $230,000

Name: help 4. Add the costs of the unfinished houses, and show that this tot
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: help 4. Add the costs of the unfinished houses, and show that this total amountequals the ending balance in the Work-in-Process Inventory account.5. Add the costs of the completed house that has not yet been sold, and showthat this equals the ending