Job-order costing system Presley Roofing Corporation was founded on January 1, 2012, when


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Job-order costing system Presley Roofing Corporation was founded on January 1, 2012, when 1 answer below » Job-order costing system Presley Roofing Corporation was founded on January 1, 2012, when stockholders contributed $5,000 for common stock. During the year, Presley purchased $2,400 of direct raw materials and used $2,160 of direct materials. There were 80 hours of direct labor worked at an average rate of $8 per hour paid in cash. The predetermined overhead rate was $6.50 per direct labor hour. The company started three custom roofing jobs. The job cost sheets reflected the following alloca- tions of costs to each. View complete question » Roof 1 Job-order costing system Presley Roofing Corporation was founded on January 1, 2012, when stockholders contributed $5,000 for common stock. During the year, Presley purchased $2,400 of direct raw materials and used $2,160 of direct materials. There were 80 hours of direct labor worked at an average rate of $8 per hour paid in cash. The predetermined overhead rate was $6.50 per direct labor hour. The company started three custom roofing jobs. The job cost sheets reflected the following alloca- tions of costs to each. Roof 1 Direct Materials $800 Direct Labor Hours 20 Roof 2 400 12 Roof 3 960 48 The company paid $176 cash for indirect labor costs and $240 cash for production sup- plies, which were all used during 2012. Actual overhead cost paid in cash other than indirect materials and indirect labor was $144. Presley completed Roofs 1 and 2 and collected the contract price for Roof 1 of $2,160 cash. The company incurred $496 of selling and adminis- trative expenses that were paid with cash. Over- or underapplied overhead is closed to Cost of Goods Sold. Required Record the preceding events in a horizontal statements model. The first event for 2012 has been recorded as an example. Reconcile all subsidiary accounts with their respective control accounts. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a bal- ance sheet for 2012. View less » Sep 01 2015 02:14 PM

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