### Overview of Kim’s Asphalt OperationsKim’s Asphalt specializes in driveway and parking lot resurfacing for both large commercial clients and small residential customers. The business maintains an inventory of materials and equipment to ensure efficiency and prompt service delivery. Any specialized equipment required is ordered as needed.#### Inventory Details- **Materials and Equipment Inventory Account**: On May 1, the balance was $44,000.- **Work-in-Process Inventory Account**: Used to track costs for incomplete work.### Costs for Jobs in Progress (As of May 1)1. **Job 27 (Highlands Mall)** - Materials and Equipment: $16,575 - Direct Labor: $14,380 - Overhead (applied): $4,2902. **Job 33 (Pine Ridge Estates)** - Materials and Equipment: $5,350 - Direct Labor: $26,650 - Overhead (applied): $7,995*Note: Overhead is applied at 30% of direct labor costs.*### New Job Activities in MayDuring May, additional work was performed on Jobs 27 and 33. Two new jobs, 34 and 35, were initiated, with job 33 completed and billed to Pine Ridge Estates.#### Costs for May Jobs- **Job 27** - Materials and Equipment: $3,800 - Direct Labor (wages payable): $5,300- **Job 33** - Materials and Equipment: $5,680 - Direct Labor: $7,550- **Job 34** - Materials and Equipment: $5,400 - Direct Labor: $6,700- **Job 35** - Materials and Equipment: $3,700 - Direct Labor: $2,400### Other Business Events in May1. **Revenue from Previous Job**: Received a $13,300 payment for work completed on Job 24 delivered in April.2. **Acquisition of Materials**: Purchased materials and equipment on account for $10,200.3. **Invoice Payment**: Billed Pine Ridge Estates for $138,000 and received $115,000.4. **Indirect Labor Costs**: Payroll for indirect labor amounted to $730.5. **Incidental Materials**: Issued $235 of materials for current jobs. **Required:**a. Prepare journal entries to record the flow of costs for operations during May.b. Calculate the amount of over- or underapplied overhead for the month.c. Determine inventory balances for Materials and Equipment Inventory and Work-in-process inventory.**Instructions:**Complete this question by entering your answers in the tabs below.- Required A- Required B- Required C---**Prepare journal entries to record the flow of costs for operations during May.** (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)- [View transaction list]---**Journal entry worksheet:**- **A B C D E F G [H] I** Record charges to work in process. **Note:** Enter debits before credits.

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Description: ### Overview of Kim’s Asphalt OperationsKim’s Asphalt specializes in driveway and parking lot resurfacing for both large commercial clients and small residential customers. The business maintains an inventory of materials and equipment to ensure eff

Overheads are the indirect costs related to the production and manufacturing of goods. These costs cannot be directly allocated, and they need to be allocated on some rational basis.Actual overhead = $730 (indirect labor)+235(indirect material)+3,000(other manufacturing overhead) = $3965 Applied overhead = $21,950 (Total direct labor cost for May)*30% = $6,585 Over applied overhead = Applied Overhead - Actual Overhead = 6585 - 3965 = $2620 Material and equipment inventory = $44,000 (Beginning balance)+10,200 (Purchases)-18,500 (Direct material issued)-235 (Indirect material) Material and equipment inventory = $35,465 Work in process inventory = $123,060 (Job 27+Job 33)+18,500 (Direct material issued)+21,950 (Direct labor cost)+6585 (Applied overhead)-103,360 (Cost of Job 33 completed ) = $66,735 Working Note: Cost of Job 33 completed = $87,945 ( Beginning balance)+15,415 (5,600+7550+7550*30%) = $103,360

Business

Accounting

Requlred: a. Prepare journal entries to record the flow of costs for operations during May. b. Calculate the amount of over- or underapplied overhead for the month. c. Determine inventory balances for Materials and Equipment Inventory and Work-in-process inventory. Complete this question by entering your answers in the tabs below. Required A Required 8 Required C Prepare journal entries to record the flow of costs for operations during May. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet

Requlred: a. Prepare journal entries to record the flow of costs for operations during May. b. Calculate the amount of over- or underapplied overhead for the month. c. Determine inventory balances for Materials and Equipment Inventory and Work-in-process inventory. Complete this question by entering your answers in the tabs below. Required A Required 8 Required C Prepare journal entries to record the flow of costs for operations during May. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet

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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Job order cost; journal entries; ending work in process;inventory analysisHidalgo Company manufactures goods to special order and usesa job order cost system. During its first month of operations, thefollowing selected transactions took place:a. Materials purchased on account ................................. $37,000b. Materials issued to the factory:Job 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,200Job 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,700Job 103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,100Job 104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,700For general use in the factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,350c. Factory wages and salaries…
4A
4. Sterling’s records show the work in process inventory had a beginning balance of $4,000 and an ending balance of $3,000. The records also showed the following data for the month: Materials used $1,500 Overhead applied 500 Cost of goods manufactured 7,500 Entry labels available for this problem: Beginning inventory Manufacturing costs incurred Materials available for use Overhead applied Ending inventory Materials used in production Cost of goods manufactured Direct labor Purchases Using the entry labels listed above, complete the following T-account to determine how much direct labor was incurred during the month? PLEASE NOTE: You must enter the entry labels exactly as written above and all entry amounts will be rounded to whole dollar amounts with "$" and commas as needed (i.e. $12,345). If no entry label is needed, please use "None" and if no entry amount is needed, please use "$0" - no quotation marks for either. You are…
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What is the balance work in process inventory at the end of the month
Accounting records for Antoinette Designs (AD) for November show the following (each entry is the total of the actual entries for the account for the month): Account Titles Work-in-Process Inventory (Direct Labor) Wages Payable Direct Materials Inventory Accounts Payable Finished Goods Inventory Work-in-Process Inventory Cost of Goods Solda Finished Goods Inventory Debit 7,200 122,130 136,800 131,400 Credit 7,200 Required: a. What was the finished goods inventory balance on November 30? b. How much manufacturing overhead was applied for November? c. What was the manufacturing overhead rate for November? d. How much manufacturing overhead was incurred for November? e. What was the Work-in-Process Inventory on November 1? f. What was the Work-in-Process Inventory on November 30? 122,130 136,800 131,400 aThis entry does not include any over- or underapplied overhead. Over- or underapplied overhead is written off to Cost of Goods Sold once for the month. For November, the amount written…
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Selected information regarding a company's most recent quarter follows (all data in thousands). Beginning work in process inventory Cost of goods manufactured Direct materials used Direct labor Ending work in process inventory What was manufacturing overhead for the quarter? OA. $180 B. $500 C. $150 D. $780 $280 $650 $220 $120 $150
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. Selected data for the company's operations last year follow: Units in beginning inventory Units produced 250 Units sold 225 Units in ending inventory Variable costs per unit: Direct materials Direct labor 25 2$ $ 100 320 Variable manufacturing overhead Variable selling and administrative Fixed costs: 40 $ 20 Fixed manufacturing overhead Fixed selling and administrative $ 60,000 $ 20,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 191,250 157,500 33,750 24,500 Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income 9,250 Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. Prepare an income statement for last year using variable costing.
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