Managerial acctg record the events in the general journal. start

Widget Construction, Inc., is a home builder in New Mexico.  Widget uses a job order costing   system in which each house is a job.  Because it constructs houses, the company uses accounts   titled Construction wages and Construction overhead.  The following events occurred during    August:                                 a. Purchased Materials on account $470,000         b. Incurred Contrstucion wages of $230,000.  Requisitioned direct materials and used direct labor in construction:         Direct Materials Direct Labor     House 402  $        58,000    $          40,000       House 403  $        63,000    $          34,000       House 404  $        60,000    $          52,000       House 405  $        89,000    $          51,000     c. Deprectaion of construction equipment $6,800         d. Other overhead costs incurred on houses 402 through 405.         Indirect Labor      $          44,000       Equipment rentals in cash      $          33,000       Worker liability insurance expired    $            7,000     e. Allocated overhead to jobs at the predetermined rate of 40% of direct labor cost     f. Houses completed 402 and 404           g. House 404 Sold for $220,000                                         Deliverables                             1.   Record the events in the general journal         2.   Post the appropriate entries to the T-accounts, identifying each entry by letter.  Determine the   ending account balances, assuming that the beginning balances were zero.     3.   Add the costs of the unfinished houses, and show that this total amount equals the ending     balances in the Work in process inventory account.       4.   Add the cost of the completed house that has not yet been sold, and show that this equals     the ending balance in Finished goods inventory.       5.   Compute gross profit on the house that was sold.  What costs must gross profit cover for     Sherborn Construction?                         Deliverable 1               Record the events in the general journal.  Start with the entry from event (a).                     Journal Entry   Date Accounts Debit Credit   a.                                                   Event (b) has two journal entries to record.  First record the construction wages.       Journal Entry   Date Accounts Debit Credit   b.                                                   Now record the requisitioned direct materials and direct labor used.         Journal Entry   Date Accounts Debit Credit   b.                                                   Next record the depreciation of construction equipment, $6,800.         Journal Entry   Date Accounts Debit Credit   c.                                                   Record the overhead costs incurred on houses 402 through 405.         Journal Entry   Date Accounts Debit Credit   d.                                                                   Record the allocated overhead to jobs at the predetermined rate of 40% of direct labor cost.     Journal Entry   Date Accounts Debit Credit   e.                                                   Record the completed houses 402 and 404 in event (f).         Journal Entry   Date Accounts Debit Credit   f.                                                   Begin by recording the revenue from the sale of house 404.         Journal Entry   Date Accounts Debit Credit   g.                                                   Next record the cost of goods sold from the sale of house 404.         Journal Entry   Date Accounts Debit Credit   g.                                                                   Deliverable 2               Post the appropriate entries to the Work in process inventory and Finished goods     inventory T-accounts.  Identify each entry by letter and determine the ending account     balances.  The sharded area is for the letter.                                       Work in process inventory         (b)   (f)           (e)                               Bal.                                               Finished goods inventory         (f)   (g)                                           Bal.                                                               Deliverable 3               Show how the costs of the unfinished houses equals the ending balance in      Work in process inventory.                                           Widget Construction, Inc.     Reconciliation of Work in process inventory Subsidiary     and Control Accounts            House #403   House #405   Total WIP Balance      Unfinished houses:               Direct materials                 Direct labor                 Manufac. overhead -40% of labor           Total costs = Work in Process                                                         Deliverable 4               Show how the costs of the completed houses equals the ending balance in      Finished goods inventory.                                           Widget Construction, Inc.     Reconciliation of Finished goods inventory Subsidiary     and Control Accounts              House#402   Total Finished Goods Bal.      Completed, unsold house:               Direct materials                 Direct labor                 Manufac. overhead -40% of labor           Total cost = Finished Goods bal.                                                         Deliverable 5               Compute the gross profit for the house that was sold.                                         Widget Construction, Inc.         Gross profit on Homes Sold in August               House #404         Sales revenue             Less: Cost of goods sold           Gross profit                             The gross profit must cover these types of costs:                                                                                      

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