Question

Instructions Ensign Landscape Design design landscape plans and plants the material for clients. On April 1, there were three jobs in prooess, 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 5540 $3,400 $2,990 Direct materials 700 560 375 $3,500 50,000 Direct labor 500 500 490 2,500 3,000 Overhead is applied at the rate of 10% of direct labor cost Jobs we sold at cost plus 30%. Selling and administrative expenses for April totaled 4.575. Round al amounts to the nearest dolor) Required 1. Prepare job-order coat sheets for each job as of April 30. 2. Calculate the ending balance in Work in Process (as of Apr 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)

Ensign Landscape Design
Job-Order Cost Sheets
For the month of April
	Job 39	Job 40	Job 41	Job 42	Job 43
Begining Balance	$540	$3,400	$2,990	0	0
Direct Materials	700	560	375	3,500	6,900
Direct Labors (a)	500	600	490	2,500	3,000
Applied Overhead [a * 110%]	550	660	539	2,750	3,300
Total Cost	2,290	5,220	4,394	8,750	13,200

Applied Overhead =(Direct Labor Cost * 110%)

2)

Ending Balance in Work In Process (as of April 30) = Total Cost of (Job 39 + Job 42)

Job 39 = $2,290

Job 42 = $8,750

TOTAL = $11,040

Cost of Goods Sold for April = Total Cost of (Job 40 + Job 41 + Job 43)

Job 40 = $5,220

Job 41 = $4,394

Job 43 = $13,200

TOTAL = $22,814

3) Ensign Landscape Design

Income Statement

For the month ended April 30

Sales	$29,658
Cost of Goods Sold	22,814
Gross Margin	6,844
Less:
Selling and administrative expenses	4,575
Operating Income	$2,269

Sales = Cost of goods sold + (30% of cost of goods sold)

= $22,814 + (30% * $22,814)

= $22,814 + $6,844.2

= $29,658.2 OR $29,658