Question & Answer: Tarek and Christina own "Flip" Company, a company that purchases homes that have been foreclosed on, remodels them and sell…..

Q1-4

Tarek and Christina own “Flip” Company, a company that purchases homes that have been foreclosed on, remodels them and sells them-hopefully for a profit. In order to keep track of costs, they uses a job order costing system. Flip Company applies overhead on the basis of square footage. For the upcoming season, Flip estimates its total manufacturing overhead costs at $320,000 and plans to renovate appropriately 16,000 square feet of construction. During the month of the season, Flip company worked on three houses and recorded the following actually direct material costs and direct labor costs for each job. Calculate the product cost incurred on each of the houses to date. What would be the gross profit the company would be reporting for the month after making an adjustment for mis-applied overhead? What is the balance in the Work-in-Process Inventory account assuming al houses worked on last season were finished and sold (no beginning inventory)? What is the balance in the Finished Goods Inventory account? Three cases have recently come across Sherlock’s desk. As usual. Sherlock has pieces of the puzzle but many items are missing. He needs to solve these cases by the days end. Compute the missing values. (Note: Complete the missing items is alphabetically order.)