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	$3,380	$3,010	—	—
Direct materials	740	610	370	$3,450	$6,880
Direct labor	480	550	540	2,450	2,950

Overhead is applied at the rate of 110% of direct labor cost. Jobs are sold at cost plus 30%. Selling and administrative expenses for April totaled $4,550. (Round all amounts to the nearest dollar.)

	Required:
1.	Prepare job-order cost sheets for each job as of April 30.
2.	Calculate the ending balance in Work in Process (as of April 30) and Cost of Goods Sold for April.
3.	Construct an income statement for Ensign Landscape Design for the month of April.

Refer to the list below for the exact wording of text items within your job-cost sheets and income statement.

Labels
Add
Less
Amount Descriptions
Applied overhead
Beginning balance
Cost of goods sold
Direct labor
Direct materials
Gross margin
Operating income
Operating loss
Sales
Selling and administrative expenses
Total

Answer 1

1)	Job cost sheet
			job 39	job 40	job 41	job 42	job 43
	Balance ,April 1		570	3380	3010
	Direct materials		740	610	370	3450	6880
	Direct labor		480	550	540	2450	2950
	overhead applied		528	605	594	2695	3245
	total cost		2318	5145	4514	8595	13075
2)	Work in process
	job 39			2318
	job 42			8595
				10913	answer
	cost of goods sold
	job 40			5145
	job 41			4514
	job 43			13075
				22734	answer
3)	Income statement
	sales	(22734*130%)=			29554
	less cost of goods sold				22734
	Gross margin				6,820
	less:operating expense				4,550
	operating income				2,270