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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 (*)...

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"Birminham Contractors uses a job order costing system. In May 2010, the company made $3,300,000 bid to build a pedestrian overpass over the beach highway at Gulf Shores, Alabama. Birminham Contractors won the bid and assigned #515 to the project. Its completion date was set at December 15, 2010. The following costs were estimated for completion of the overpass: $1,240,000 for direct material, $670,000 for direct labor and $402,000 for overhead.

During July, work began on job #515; direct material cost assigned to job #515 was $121,800, and direct labor cost associated with it was $175,040. The firm uses a pre-determined OH rate of 60% of direct labor cost. Birminham Contractors also worked on several other jobs during July and incurred the following costs:

Direct Materials (including job #515) issued $579,300
Direct Labor (including job #515) accrued $84,000
Indirect Labor $55,800
Administrative salaries and wages accrued $39,600
Depreciation on construction equipment $26,400
Depreciation on office equipment $7,800
Client entertainment (on accounts payable) $11,100
Advertising for firm (paid in cash) $6,600
Indirect Material (from supplies inventory) $ 18,600
Misc. expenses (design-related; to be paid in the following month) $10,200
Accrued Utilities (for office, $1,800; for construction, $5,400) $7,200

During July, Birminham Contractors completed several jobs that had been in process before the beginning of the month. These completed jobs sold for
$1,224,000 and payment will be made to the company in August. The related job cost sheets showed costs associated with those jobs of $829,000. At the beginning of July, Birminham Contractors had Work in Process Inventory $871,800."

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. Job Cost Sheet - Job #515 Customer Name and Address: 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: 5/2010 Scheduled Starting Date: 7/2010 Agreed Upon Completion Date: 12/15/2010 Contract Price: $3,300,000 Actual Completion Date: Special Instructions: None Direct Materials (Est.): $1,240,000 Date Source Cost 2010 July 31 Summary of material req. $121,800 Direct Labor (Est.): $670,000 Overhead (Est.): $402,000 Date Source Cost Date Source Cost 2010 2010 July 31 Summary of time sheets July 31 Journal entry of for direct labor $175,040 7/31/10 $105,024 Summary (as of 7/31/10) Actual Budget Under(Over) 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. Journal Entries Work in Process Job - #515 121,800 Work in Process - Other Jobs 457,500 Direct Materials Inventory 579,300 To record materials requisitions Work in Process Job - #515 175,040 Work in Process - Other Jobs 408,960 Manufacturing Overhead 55,800 Salaries and Wages Expense 39,600 Cash/Wages Payable 679,400 To record wages Manufacturing Overhead - Deprecation Expense 7,800 Utilities Expense - Accumulated Depr. - Const. Assets 26,400 Accumulated Depr. - Office Assets 7,800 Supplies Inventory 18,600 Utilities Payable 7,200 To record accruals Sales Promotion Expense 11,100 Accounts Payable 11,100 To record sales promotion expense Advertising Expense 6,600 Cash 6,600 To record advertising expense Miscellaneous Expense 10,200 Accounts Payable 10,200 To record miscellaneous expense Work in Process Job - #515 105,024 Work in Process - Other Jobs - Manufacturing Overhead - To apply overhead Cash/Accounts Receivable 1,224,000 Sales 1,224,000 To record sales Finished Goods Inventory - Work in Process Inventory To transfer jobs to finished goods c. Work in process - beginning $871,800 Production costs: Direct material $- Direct labor - Applied overhead - Work in process - ending Cost of goods manufactured d. Birmingham Contractors Income Statement For the Month Ended July 31, 2010 Revenues from Completed Projects $1,224,000 Less Cost of Goods Sold (829,000) Gross Margin on Completed Jobs $395,000 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 (77,100) Income Before Income Taxes $317,900 Income Taxes (127,160) Net Income $190,740 Description of Job: Prepare
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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...

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