During February, Vargas Company worked on three jobs. Data relating to these three jobs follow:

Overhead is assigned on the basis of direct labor hours at a rate of $5.30 per direct labor hour. During February, Jobs 83 and 84 were completed and transferred to finished goods inventory. Job 84 was sold by the end of the month. Job 85 was the only unfinished job at the end of the month.

Required:
1. Calculate the per-unit cost of Jobs 83 and 84.
2. Compute the ending balance in the work-in-process inventory account.
3. Prepare the journal entries reflecting the completion of Jobs 83 and 84 and the sale of Job 84. The selling price is 140 percent ofcost.

Transcribed Image Text:

Job 83 Job 84 Job 85 Units in cach order Units sold Matcrials requisitioned Direct labor hours Direct labor cost 200 200 S640 400 $2,480 120 165 $744 360 $1,980 $600 200 $1,240