Activity-Based Costing, Unit Cost, Ending Work-in-Process Inventory, Journal Entries

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:

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

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:

Question Content Area

1. Calculate the per-unit cost of Jobs 13-280 and 13-282. Round unit cost to nearest cent.

Job 13-280	$fill in the blank 701f3af9807e050_1 per unit
Job 13-282	$fill in the blank 701f3af9807e050_2 per unit

2. Compute the ending balance in the work-in-process inventory account.

$fill in the blank 701f3af9807e050_3

Question Content Area

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.

a.	Accounts PayableAccounts ReceivableCashCost of Goods SoldFinished GoodsOverhead ControlWork in Process
	Accounts PayableAccounts ReceivableCashCost of Goods SoldFinished GoodsOverhead ControlWork in Process
b (1).	Accounts PayableCashCost of Goods SoldFinished GoodsMaterialsOverhead ControlWork in Process
	Accounts PayableAccounts ReceivableCashCost of Goods SoldFinished GoodsOverhead ControlWork in Process
b (2).	Accounts PayableAccounts ReceivableFinished GoodsMaterialsSales RevenueWork in Process
	Accounts PayableAccounts ReceivableCost of Goods SoldMaterialsSales RevenueWork in Process