E 3-15 FROM THE BOOK - company are identical to the methods...

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EXERCISE 3-15 FROM BOOK Leeds Architecturl Consultants began operations on January 2. The following activity was recorded in the company’s Work in Process account for the first month of operatioins: WORK IN PROCESS SUBCONTRAC T WK 230,00 0 390,00 0 TO COMPLETED PROJECTS DIRECT STAFF COST 75,000 STUDIO OVERHEAD 120,00 0 Leeds Architectural Consultants is a service firm, so the names of the accounts it uses are different from the names used in manufacturing companies. Costs of Subcontracted Work is comparable to Direct Materials; Direct Staff costs is the same as Direct Labor; Studio Overhead is the same as Manufacturing Overhead, and Completed Projects is the same as Finished Goods. Apart from the difference in terms, the accounting methods used by the
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Unformatted text preview: company are identical to the methods used by manufacturing companies. Leeds Architectural Consultants uses job-order costing and applies studio overhead to Work in Process on the basis of direct staff costs. At the end of January, only one job was still in process. This job (Lexington Gardens Project) had been charged with $6,500 in direct staff costs. REQUIRED: 1) Compute the predetermined overhead rate that was in use during January. 2) Complete the following job cost sheet for the partially completed Lexington Gardens Project: JOB COST SHEET - LEXINGTON GARDENS PROJECT COSTS OF SUBCONTRACTED WORK ? DIRECT STAFF COSTS ? STUDIO OVERHEAD ? TOTAL COST TO JANUARY 31 ?...
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This note was uploaded on 06/04/2011 for the course ACCOUNTING 2156 taught by Professor Cheryl during the Spring '09 term at Central Community College.

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E 3-15 FROM THE BOOK - company are identical to the methods...

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