Question

Ensign Landscape Design designs landscape plans and plants the material for clients. On April 1, there were three jobs in process, Jobs 39, 40, and 41. During April, two more jobs were started, Jobs 42 and 43. By April 30, Jobs 40, 41, and 43 were completed and sold. The following data were gathered: Job 39 Job 40 Job 41 Job 42 Job 43 Balance, April 1 $570 $3,450 $3,000 - Direct materials 690 600 410 520 $3,520 $6,880 2,550 2,960 Direct labor 520 590

Answer 1

Job Cost sheet

	Job 39	Job 40	Job 41	Job 42	Job 43
Beginning balance	570	3450	3000
Direct material	690	600	410	3520	6880
Direct labor	520	590	520	2550	2960
Applied overhead	572	649	572	2805	3256
Total Job Cost	2352	5289	4502	8875	13096

Work in process April 30 = 2352+8875 = 11227

Cost of goods sold for April = 5289+4502+13096 = 22887

Income statement

Sales (22887*1.3)	29753
Cost of goods sold	22887
Gross margin	6866
Selling and administrative expense	4625
Operating income	2241