Feldspar Company uses an ABC system to apply overhead. There are three activity rates, shown on page 243.
Setting up ...... $20 per setup
Machining ...... $5.10 per machine hour
Other overhead ..... 80% of direct labor cost
During September, Feldspar worked on three jobs. Data relating to these jobs follow:
During September, Jobs 13-280 and 13-282 were completed and transferred to Finished Goods Inventory. Job 13-280 was sold by the end of the month. Job 13-281 was the only unfinished job at the end of the month.
1. Calculate the per-unit cost of Jobs 13-280 and 13-282. (Round unit cost to nearest cent.)
2. Compute the ending balance in the work-in-process inventory account.
3. Prepare the journal entries reflecting the completion of Jobs 13-280 and 13-282 and the sale of Job 13-280 on account. The selling price is 150 percent of cost.

  • CreatedSeptember 01, 2015
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