I have been able to do the journal entries for the whole problem however, I am having some difficulties with a couple of the entries and getting them to balance. Here is the problem
Jackson Construction Co. uses a job order costing system. In May 2008 jackson made a 1650000 bid to
Build a pedestrian overpass over the beach highway. The following costs were estimated for completion
Of the overpass; 620000 direct material, 325000 direct labor and 201000 for overhead.
During July direct material cost asssigned to job #515 was 60900, and direct labor was 87520.
The firm used a predetermined OH rate of 60 % of direct labor cost. Jackson worked on several other jobs
And incurred the following expenses;
Direct material (including job #515) 289650
Direct labor(including job #515) 292000
Indirect labor 27900
Administrative salaries and wages 19800
Depreciation on sonstruction equip 13200
Depreciation on office equip 3900
Client entertainment 5550
Advertising 3300
Indirect material from supplies inventory 9300
Misc expenses 5100
Accrued utilities 3600
a.prepare journal entries
b. prepare a cost of goods manuafactured schedule
c. assuming the company pays a 40% tax rate prepare an income statement
The journal entries I am having troubles with are as follows:
Work in Process Job - #515 87,520
Work in Process - Other Jobs 204,480
Manufacturing Overhead
Salaries and Wages Expense 19,800
Cash/Wages Payable
To record wages
Deprecation Expense
Deprecation Expense 3,900
Deprecation Expense
Accumulated Depr. - Const. Assets 13,200
Accumulated Depr. - Office Assets 3,900
Supplies Inventory 9,300
Accumulated Depr. - Const. Assets 3,600
Work in Process Job - #515 52,512
Work in Process - Other Jobs
Manufacturing Overhead
Below is the format for the COG manufactured and the income statement.
Work in process - beginning
Production costs:
Direct material
Direct labor
Applied overhead
Work in process - ending
Cost of goods manufactured
Jackson Construction Company
Income Statement
For the Month Ended July 31, 2008
Revenues from Completed Projects
Less Cost of Goods Sold
Gross Margin on Completed Jobs
Non-Production Expenses:
Salaries and Wages Expense
Depreciation Expense
Utilities Expense
Sales Promotion Expense
Advertising Expense
Miscellaneous Expense
Income Before Income Taxes
Income Taxes
Net Income
