Please help me AccountingManor Painting is a commercial interior and exterior painting contractor specializing in commercial buildings. An inventory of materialsand equipment is on hand at all times, so work can start as quickly as possible. Special equipment is ordered as required. On August 1,the Materials Inventory account had a balance of $54,000. The Work-in-Process Inventory account is maintained to record costs ofwork not yet complete. There were two such jobs on August 1 with the following costs:Job 84$ 23,10020,3008,120Materials and equipmentDirect laborOverhead (applied)Overhead has been applied at 40 percent of the costs of direct labor using an annual rate.During August, Manor Painting started two new jobs. Additional work was carried out on Jobs 84 and 87. Job 87 was completed andbilled to the customer. Details on the costs incurred on jobs during August follow:Property taxesStorage area rentalJob 87$78,80039,40015,760Job 84$ 4,5007,800Truck and delivery costAdvertising and promotion campaign.InspectionsTelephone and other miscellaneousEquipment depreciationJob 87$ 7,20010, 100Materials and equipmentDirect labor (wages payable)Other August Events1. Purchased materials and equipment for $14,100.2. Billed $195,000 to the customer for Job 87 and received payment for $115,000 of that amount.3. Received $18,600 payment on Job 82 delivered to customer in July.4. Determined that payroll for indirect labor personnel totaled $2,100.5. Issued supplies and incidental materials for current jobs costing $750.6. Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation):Job 88$ 6,9008,900$ 9001,0501,6301,200Job 90$4,4002,4009006802,720Required:a. Prepare journal entries to record the flow of costs for operations during August.b. Calculate the amount of over- or underapplied overhead for the month. This amount is debited or credited to Cost of Goods Sold.c. Determine inventory balances for Materials and Equipment Inventory and Work-in-Process Inventory.

Name: Please help me AccountingManor Painting is a commercial interior and e
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Please help me AccountingManor Painting is a commercial interior and exterior painting contractor specializing in commercial buildings. An inventory of materialsand equipment is on hand at all times, so work can start as quickly as possible. Special

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Accounting Manor Painting is a commercial interior and exterior painting contractor specializing in commercial buildings. An inventory of materials and equipment is on hand at all times, so work can start as quickly as possible. Special equipment is ordered as required. On August 1, the Materials Inventory account had a balance of $54,000. The Work-in-Process Inventory account is maintained to record costs of work not yet complete. There were two such jobs on August 1 with the following costs: Materials and equipment Job 84 $ 23,100 Job 87 $78,800 Direct labor 20,300 39,400 Overhead (applied) 8,120 15,760 Overhead has been applied at 40 percent of the costs of direct labor using an annual rate. During August, Manor Painting started two new jobs. Additional work was carried out on Jobs 84 and 87. Job 87 was completed and billed to the customer. Details on the costs incurred on jobs during August follow: Property taxes Storage area rental Truck and delivery cost Advertising and promotion campaign. Job 84 Job 87 $4,500 $ 7,200 7,800 10,100 Materials and equipment Direct labor (wages payable) Other August Events 1. Purchased materials and equipment for $14,100. 2. Billed $195,000 to the customer for Job 87 and received payment for $115,000 of that amount. 3. Received $18,600 payment on Job 82 delivered to customer in July. 4. Determined that payroll for indirect labor personnel totaled $2,100. 5. Issued supplies and incidental materials for current jobs costing $750. 6. Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation): Inspections Telephone and other miscellaneous Equipment depreciation $ 900 1,050 1,630 1,200 Job 88 $ 6,900 8,900 900 680 2,720 Job 90 $4,400 2,400 Required: a. Prepare journal entries to record the flow of costs for operations during August. b. Calculate the amount of over- or underapplied overhead for the month. This amount is debited or credited to Cost of Goods Sold. c. Determine inventory balances for Materials and Equipment Inventory and Work-in-Process Inventory.