JANUARY ANSWER KEY

Pool: $20,000. Eligible field hours: 1,000. Rate: $20 per hour.
J101 Office Renovation: $10,000 applied; $60,000 total job costs.
J102 Warehouse Addition: $6,000 applied; $86,000 total job costs.
J104 Retail Shell: $4,000 applied; $64,000 total job costs.
Entry: debit Applied indirect costs once for each job; credit Less, applied indirect costs $20,000 without assigning the credit to a customer or job.
Debits equal credits. Unapplied balance is zero. Company net income is $5,000 before and after allocation.
Original indirect account balances remain: fuel $4,000; safety equipment $2,000; general liability insurance $6,000; estimating salaries $6,000; estimating software $1,000; project management software $1,000.

WIP COST TRANSFER STAGE
The January Levvigo WIP file uses the real Levvigo template with the three jobs and post-allocation costs entered. All jobs began in January. Estimates include indirect costs.
Costs total $210,000 and agree to QBO training reports after allocation. WIP revenue and underbilling/overbilling GL controls deliberately reflect the pre-WIP-entry balances; those controls can show differences. The WIP revenue adjustment is a separate exercise. Do not force the controls to zero by replacing actual GL inputs with calculated WIP results.
The standard-rate alternatives in the article are not part of these posted example amounts.
