Ensign Landscape Design designs landscape plans and plants the material for clients. On April 1, there were three jobs in process, Jobs 39, 40, and 41. During April, two more jobs were started, Jobs 42 and 43. By April 30, Jobs 40, 41, and 43 were completed and sold. The following data were gathered: Job 39 Job 40 Job 41 Job 42 Job 43 Balance, April 1 $540 $3,410 $2,980 — — Direct materials 680 530 360 $3,500 $6,950 Direct labor 480 580 470 2,520 3,000 Overhead is applied at the rate of 110% of direct labor cost. Jobs are sold at cost plus 30%. Selling and administrative expenses for April totaled $4,550. (Round all amounts to the nearest dollar.) Required: 1. Prepare job-order cost sheets for each job as of April 30. 2. Calculate the ending balance in Work in Process (as of April 30) and Cost of Goods Sold for April. 3. Construct an income statement for Ensign Landscape Design for the month of April. Refer to the list below for the exact wording of text items within your job-cost sheets and income statement. Labels Add Less Amount Descriptions Applied overhead Beginning balance Cost of goods sold Direct labor Direct materials Gross margin Operating income Operating loss Sales Selling and administrative expenses Total 1. Prepare job-order cost sheets for each job as of April 30. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your job-cost sheets. Ensign Landscape Design Job-Order Cost Sheets For the Month of April 1 Job 39 Job 40 Job 41 Job 42 Job 43 2 Beginning balance 3 4 5 6 2. Calculate the ending balance in Work in Process (as of April 30) and Cost of Goods Sold for April. Ending Balance in Work in Process Cost of Goods Sold for April 3. Construct an income statement for Ensign Landscape Design for the month of April. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your income statement. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Ensign Landscape Design Income Statement For the Month Ended April 30 1 2 3 4 5 6
Ensign Landscape Design designs landscape plans and plants the material for clients. On April 1, there were three jobs in process, Jobs 39, 40, and 41. During April, two more jobs were started, Jobs 42 and 43. By April 30, Jobs 40, 41, and 43 were completed and sold. The following data were gathered: Job 39 Job 40 Job 41 Job 42 Job 43 Balance, April 1 $540 $3,410 $2,980 — — Direct materials 680 530 360 $3,500 $6,950 Direct labor 480 580 470 2,520 3,000 Overhead is applied at the rate of 110% of direct labor cost. Jobs are sold at cost plus 30%. Selling and administrative expenses for April totaled $4,550. (Round all amounts to the nearest dollar.) Required: 1. Prepare job-order cost sheets for each job as of April 30. 2. Calculate the ending balance in Work in Process (as of April 30) and Cost of Goods Sold for April. 3. Construct an income statement for Ensign Landscape Design for the month of April. Refer to the list below for the exact wording of text items within your job-cost sheets and income statement. Labels Add Less Amount Descriptions Applied overhead Beginning balance Cost of goods sold Direct labor Direct materials Gross margin Operating income Operating loss Sales Selling and administrative expenses Total 1. Prepare job-order cost sheets for each job as of April 30. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your job-cost sheets. Ensign Landscape Design Job-Order Cost Sheets For the Month of April 1 Job 39 Job 40 Job 41 Job 42 Job 43 2 Beginning balance 3 4 5 6 2. Calculate the ending balance in Work in Process (as of April 30) and Cost of Goods Sold for April. Ending Balance in Work in Process Cost of Goods Sold for April 3. Construct an income statement for Ensign Landscape Design for the month of April. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your income statement. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Ensign Landscape Design Income Statement For the Month Ended April 30 1 2 3 4 5 6
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
Ensign Landscape Design designs landscape plans and plants the material for clients. On April 1, there were three jobs in process, Jobs 39, 40, and 41. During April, two more jobs were started, Jobs 42 and 43. By April 30, Jobs 40, 41, and 43 were completed and sold. The following data were gathered:
| Job 39 | Job 40 | Job 41 | Job 42 | Job 43 | |
| Balance, April 1 | $540 | $3,410 | $2,980 | — | — |
| Direct materials | 680 | 530 | 360 | $3,500 | $6,950 |
| Direct labor | 480 | 580 | 470 | 2,520 | 3,000 |
Overhead is applied at the rate of 110% of direct labor cost. Jobs are sold at cost plus 30%. Selling and administrative expenses for April totaled $4,550. (Round all amounts to the nearest dollar.)
| Required: | |
| 1. | Prepare job-order cost sheets for each job as of April 30. |
| 2. | Calculate the ending balance in Work in Process (as of April 30) and Cost of Goods Sold for April. |
| 3. | Construct an income statement for Ensign Landscape Design for the month of April. |
Refer to the list below for the exact wording of text items within your job-cost sheets and income statement.
| Labels | |
| Add | |
| Less | |
| Amount Descriptions | |
| Applied overhead | |
| Beginning balance | |
| Cost of goods sold | |
| Direct labor | |
| Direct materials | |
| Gross margin | |
| Operating income | |
| Operating loss | |
| Sales | |
| Selling and administrative expenses | |
|
Total |
1. Prepare job-order cost sheets for each job as of April 30. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your job-cost sheets.
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2. Calculate the ending balance in Work in Process (as of April 30) and Cost of Goods Sold for April.
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3. Construct an income statement for Ensign Landscape Design for the month of April. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your income statement. If a net loss has been incurred, enter that amount as a negative number using a minus sign.
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Ensign Landscape Design
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Income Statement
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For the Month Ended April 30
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