job costs in a service company on september 1 two jobs were in process at pete rsquo 691062

Job Costs in a Service Company

On September 1, two jobs were in process at Pete’s Patios. Details of the jobs follow:

Materials Inventory on September 1 totaled $11,040, and $1,392 worth of materials was purchased during the month. Indirect materials of $192 were withdrawn from materials inventory. On September 1, finished goods inventory consisted of two jobs, PP 12, costing $4,704, and PP 14, with a cost of $1,896. Costs for both jobs were transferred to Cost of Services Billed during the month.

Also during September, Jobs PP 24 and PP 30 were completed. Completing Job PP 24 required an additional $2,720 in direct labor. The completion costs for Job PP 30 included $1,296 in direct materials and $8,000 in direct labor.

Pete’s Patios used a total of $3,768 of direct materials (excluding the $192 indirect materials) during the period, and total direct labor costs during the month amounted to $16,320. Overhead has been estimated at 50 percent of direct labor costs, and this relation has been the same for the past few years.

Required

Compute the costs of Jobs PP 24 and PP 30 and the balances in the September 30 inventory accounts.