P17-25A Quaint Construction, Inc., is a home builder in Arizona. Quaint uses a job order costing

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P17-25A Accounting for construction transactions [30–45 min]

Quaint Construction, Inc., is a home builder in Arizona. Quaint uses a job order costing
system in which each house is a job. Because it constructs houses, the company
uses an account titled Construction overhead. The company applies overhead based
on estimated direct labor costs. For the year, it estimated construction overhead of
$1,100,000 and total direct labor cost of $2,750,000. The following events occurred
during August:

a. Purchased materials on account, $400,000.
b. Requisitioned direct materials and used direct labor in construction. Record the
materials requisitioned.

Direct materials
Direct labor
42,000 35,000 57,000 53,000
House 402 $ House 403 House 404 House 405
54,000 68,000 63,000 85,000

c. The company incurred total wages of $200,000. Use the data from item b to assign the wages.
d. Depreciation of construction equipment, $6,200.
e. Other overhead costs incurred on houses 402 through 405:
Indirect labor . . . . . . . . . . . . . . . . . . Equipment rentals paid in cash . . . . . Worker liability insurance expired . .
f. Allocated overhead to jobs.
g. Houses completed: 402, 404.
h. House sold: 404 for $250,000.

and so on, it's from Accounting 9e page 843.