Problem 5-42
Name:
Fill in the shaded cells in columns B, C, E, G, and I as appropriate. Enter amounts to be
subtracted as negatives. An asterisk (*) will appear if you have entered incorrect data.
The journal entry accounts will be choosen from a drop-down list.
a.
Customer Name and Address: Description of Job: Prepare
City of Gulf Shores site, build and install a
Gulf Shores, Alabama pedestrian overpass in
Gulf Shores; see bid
specifications for details.
Contract Agreement Date: 5/2013
Scheduled Starting Date: 7/2013
Agreed Upon Completion Date: 12/15/2013 Contract Price:
Actual Completion Date:
Special Instructions: None
Direct Materials (Est.): 1,240,000$
Date
Source Cost
2013
July 31 Summary of material req. 121,800$
Direct Labor (Est.): 670,000$ Overhead (Est.):
Date Source
Source Cost
Date Source
Source
2013 2013
July 31 Summary of time sheets July 31 Journal entry of
sheets for direct
for direct labor 175,040$ 7/31/13
Actual Budget
Direct material 121,800$ 1,240,000$
Direct labor 175,040 670,000
Overhead 105,024 402,000
Totals 401,864$ 2,312,000$
b.
Solution
Job Cost Sheet – Job #515
Summary (as of 7/31/13)
Journal Entries
121,800
457,500
To record materials requisitions
175,040
408,960
55,800
39,600
To record wages
50,400
7,800
1,800
To record accruals
11,100
To record sales promotion expense
6,600
To record advertising expense
10,200
To record miscellaneous expense
105,024
245,376
To apply overhead
1,224,000
To record sales
*829,000
*
To record cost of goods sold
Cash/Accounts Receivable
Sales
Cost of Goods Sold
Finished Goods Inventory
Accounts Payable
Work in Process Job – #515
Work in Process – Other Jobs
Manufacturing Overhead
Accounts Payable
Advertising Expense
Cash
Miscellaneous Expense
Accumulated Depr. – Office Assets
Supplies Inventory
Utilities Payable
Sales Promotion Expense
Manufacturing Overhead
Deprecation Expense
Utilities Expense
Accumulated Depr. – Const. Assets
Manufacturing Overhead
Salaries and Wages Expense
Salaries/Wages Payable
Work in Process Job – #515
Work in Process – Other Jobs
Direct Materials Inventory
Work in Process Job – #515
Work in Process – Other Jobs
c. Work in process – beginning
Production costs:
Direct material 579,300$
Direct labor 584,000
Applied overhead 350,400
Work in process – ending
Cost of goods manufactured
d.
Revenues from Completed Projects
Less Cost of Goods Sold
Gross Margin on Completed Jobs
Non-Production Expenses:
Salaries and Wages Expense 39,600$
Depreciation Expense 7,800
Utilities Expense 1,800
Sales Promotion Expense 11,100
Advertising Expense 6,600
Miscellaneous Expense 10,200
Income Before Income Taxes
Income Taxes
Net Income
Birmingham Contractors
Income Statement
For the Month Ended July 31, 2013
Fill in the shaded cells in columns B, C, E, G, and I as appropriate. Enter amounts to be
subtracted as negatives. An asterisk (*) will appear if you have entered incorrect data.
3,300,000$
402,000$
Cost
105,024$
Under(Over)
Summary (as of 7/31/13)
Journal Entries
579,300
679,400
26,400
7,800
18,600
7,200
11,100
6,600
10,200
350,400
1,224,000
829,000
871,800$
1,513,700
2,385,500$
(1,556,500)
829,000$
1,224,000$
(829,000)
395,000$
(77,100)
317,900$
(127,160)
190,740$
Birmingham Contractors
Income Statement
For the Month Ended July 31, 2013