Birminham Contractors uses a job order costing system. In May 2010, the company made $3,300,000 bid to build a pedestrian overpass over the beach…

Birminham Contractors uses a job order costing system. In May 2010, the company made $3,300,000 bid to build a pedestrian overpass over the beach highway at Gulf Shores, Alabama. Birminham Contractors won the bid and assigned #515 to the project. Its completion date was set at December 15, 2010. The following costs were estimated for completion of the overpass: $1,240,000 for direct material, $670,000 for direct labor and $402,000 for overhead.During July, work began on job #515; direct material cost assigned to job #515 was $121,800, and direct labor cost associated with it was $175,040. The firm uses a pre-determined OH rate of 60% of direct labor cost. Birminham Contractors also worked on several other jobs during July and incurred the following costs:Direct Materials (including job #515) issued $579,300 Direct Labor (including job #515) accrued $84,000Indirect Labor $5,800Administrative salaries and wages accrued $39,600Depreciation on construction equipment $26,400Depreciation on office equipment $7,800Client entertainment (on accounts payable) $11,100Advertising for firm (paid in cash) $6,600Indirect Material (from supplies inventory) $ 18,600Misc. expenses (design-related; to be paid in the following month) $10,200Accrued Utilities (for office, $1,800; for construction, $5,400) $7,200During July, Birminham Contractors completed several jobs that had been in process before the beginning of the month. These completed jobs sold for $1,224,000 and payment will be made to the company in August. The related job cost sheets showed costs associated with those jobs of $829,000. At the beginning of July, Birminham Contractors had Work in Process Inventory $871,800.a.Prepare a job order cost sheet for job #515, including all job details, and post the appropriate cost information for July.b.Prepare journal entries for the preceding information.c.Prepare a Cost of Goods Manufactured Schedule for July for Birminham Contractors.d.Assuming that the company pays income tax at a 40% rate, prepare an income statement for Birminham Contractors.

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