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	$5.20 per machine hour
Other overhead	70% 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		$4,720		$3,700		$5,800
Direct labor cost		$2,000		$4,700		$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:

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.

a.	Finished Goods	$	BLANK
	Work in Process	BLANK	$
b (1).	Cost of Goods Sold	$	Blank
	Finished Goods	BLANK	$
b (2).	Accounts Receivable	$	blank
	Sales Revenue	blank	$