Mazlow Company uses an ABC system to apply overhead. There are three activity rates:
Purchasing ...... $30 per purchase order
Machining ...... $5 per machine hour
Other overhead .... 60% of direct labor cost
During August, Mazlow worked on three jobs. Data relating to these jobs follow:

During August, Jobs 90 and 92 were completed and transferred to finished goods inventory. Job 90 was sold by the end of the month. Job 91 was the only unfinished job at the end of the month.

Required:
1. Calculate the per-unit cost of Jobs 90 and 92.
2. Compute the ending balance in the work-in-process inventory account.
3. Prepare the journal entries reflecting the completion of Jobs 90 and 92 and the sale of Job 90. The selling price is 140 percent ofcost.

Transcribed Image Text:

Job 90 Job 91 Job 92 Units in cach order Units sold Materials requisitioned Direct labor cost Machine hours Purchase orders 110 110 S1,730 $2,000 60 400 100 S3,000 S4,600 40 $1,200 $800 20 25