Feldspar Company uses an ABC system to apply overhead. There are three activity rates:
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.
Job 13-280 _____________ $ per unit
Job 13-282 _____________ $ per unit
2. Compute the ending balance in the work-in-process inventory account. $__________
3. Prepare the journal entries reflecting
(a.) The completion of Jobs 13-280 and 13-282 and
(b.) The sale of Job 13-280 on account. Make the entry to record the cost of Job 13-280 first, followed by the entry to record the revenue from its sale. The selling price is 150 percent of cost.

Transcribed Image Text:

Job 13-280 200 200 Job 13-281 Job 13-282 Units in each order Units sold Materials requisitioned Direct labor cost Machine hours Number of setups 100 100 500 $4,730 $3,800 $5,600 $ 800 40 25 $4,600 $2,000 80 100 15 20