Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential cliets. An inventory of materials and equipment is on hand at all times so that work can start as quickly as possible. Special equipment is ordere as required. On May 1, the Materials and Equipment Inventory account had a balance of $44.000. The Work-in-Process Inventory account is maintained to record costs of work not yet complete. There were two such jobs on May 1 with the following costs. Haterials and equipment Direct labor overhead (applied) Job 27 Highlands Mall $16,575 14,300 4,290 Job 33 Pine Ridge Estates $ 53,300 26,650 7,995 Overhead has been applied at 30 percent of the costs of direct labor. During May, Kim's Asphalt started two new jobs. Additional work was carried out on Jobs 27 and 33. with the latter completed and billed to Pine Ridge Estates. Details on the costs incurred on jobs during May follow.
Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential cliets. An inventory of materials and equipment is on hand at all times so that work can start as quickly as possible. Special equipment is ordere as required. On May 1, the Materials and Equipment Inventory account had a balance of $44.000. The Work-in-Process Inventory account is maintained to record costs of work not yet complete. There were two such jobs on May 1 with the following costs. Haterials and equipment Direct labor overhead (applied) Job 27 Highlands Mall $16,575 14,300 4,290 Job 33 Pine Ridge Estates $ 53,300 26,650 7,995 Overhead has been applied at 30 percent of the costs of direct labor. During May, Kim's Asphalt started two new jobs. Additional work was carried out on Jobs 27 and 33. with the latter completed and billed to Pine Ridge Estates. Details on the costs incurred on jobs during May follow.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 22E: CleanCom Company specializes in cleaning commercial buildings and construction sites. Each building...
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