Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem 7P
The following invoices are being entered into the accounting system. Using the chart of accounts in Figure 2-1, determine the changes to the
- a. A $5,000 invoice for concrete charged to job cost code 302.01.32300M
- b. A $12,350 invoice from a subcontractor for plumbing charged to job cost code 309.02.22100S. Ten percent retention is withheld from the invoice.
- c. A $255 phone bill charged to job cost code 315.01.01800O
- d. A $1,352 bill for main office rent
- e. A $112 invoice for office supplies for the main office
- f. A $375 invoice for repairs to Backhoe 2
- g. A $563 invoice for nails. The nails will be placed in inventory until they are needed on the jobs, at which time they will be billed to the jobs.
What are the changes to the balance sheet, income statement, job cost ledger, and equipment ledger as a result of all of these invoices?
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Multiple choice
Answer the following questions by analysing the T-accounts given below.
a) Purchases of direct material
b) The cost of direct material used
c) Why does direct labor account has a credit balance of $5000? Explain
d) Direct labor costs assigned to production
e) The overhead as a percentage of direct labor costs
f) Total manufacturing costs charged to the Work in Process Inventory account during the current year
g) The cost of finished goods manufactured
h) The year-end balance in the Work in Process Inventory account
i) The cost of goods sold
j) The total amount of inventory listed in the hear-end balance sheet
k) Manufacturing overhead assigned to production
Chapter 3 Solutions
Construction Accounting And Financial Management (4th Edition)
Ch. 3 - How do the relationships between the balance...Ch. 3 - Which of the transactions from this chapter result...Ch. 3 - Prob. 3DQCh. 3 - Which of the transactions from this chapter result...Ch. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - The following invoices are being entered into the...Ch. 3 - Prob. 9PCh. 3 - Using the chart of accounts in Figure 2-1,...Ch. 3 - Using the chart of accounts in Figure 2-1,...
Ch. 3 - Using the chart of accounts in Figure 2-1,...Ch. 3 - Using the chart of accounts in Figure 2-1,...Ch. 3 - Using the chart of accounts in Figure 2-1,...Ch. 3 - Using the chart of accounts in Figure 2-1,...Ch. 3 - Using the chart of accounts in Figure 2-1,...Ch. 3 - Using the chart of accounts in Figure 2-1,...Ch. 3 - Using the chart of accounts in Figure 2-1,...Ch. 3 - Using the chart of accounts in Figure 2-1,...
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