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.
Required:
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.

Transcribed Image Text:

Job 13-280 Job 13-281 Job 13-282 Units in each order Units sold Materials requisitioned Direct labor cost Machine hours Number of setups 200 200 S4,730 $2,000 80 20 100 100 S5,600 S 800 40 25 500 $3,800 $4,600 100 15