Question

Instructions Ensign Landscape Design designs landscape plans and plants the material for clients. On April 1, there were three jobs in prodals, 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 $520 $3,350 $2,990 Direct materials 730 530 370 $3,510 2,470 $6,850 3,000 Direct labor 460 560 490 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 sheels 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.

Answer 1

1	Job cost sheet
		job 39	job 40	job 41	job 42	job 43
	Balance ,April 1	$           520	$      3,350	$      2,990
	Direct materials	$           730	$         530	$         370	$      3,510	$        6,850
	Direct labor	$           460	$         560	$         490	$      2,470	$        3,000
	overhead applied	$           506	$         616	$         539	$      2,717	$        3,300
	total cost	$        2,216	$      5,056	$      4,389	$      8,697	$      13,150

2)	Work in process
	job 39	$        2,216
	job 42	$        8,697
		$      10,913
	cost of goods sold
	job 40	$        5,056
	job 41	$        4,389
	job 43	$      13,150
		$      22,595
3)	Income statement
	sales (22595*130%)	$      29,374
	less cost of goods sold	$      22,595
	Gross margin	$        6,779
	less:operating expense	$        4,550
	operating income	$        2,229