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

Salazar Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Salazar identified three overhead activities and related drivers. Budgeted information for the year is as follows:

Activity	Cost	Driver	Amount of Driver
Setting up design	$168,000	Setups	1,200
Purchasing	186,000	Number of parts	15,000
Other overhead	415,000	Direct labor hours	50,000

Salazar worked on five jobs in March. Data are as follows:

		Job 15		Job 16		Job 17		Job 18		Job 19
Balance, March 1		$34,500		$39,890		$24,090		$0		$0
Direct materials		$28,000		$37,900		$25,350		$11,000		$13,550
Direct labor		$10,000		$8,500		$23,000		$12,700		$8,000
Setups		20		14		35		8		15
Number of parts		150		180		200		500		300
Direct labor hours		650		580		1,600		870		520

By March 31, Jobs 15, 16, and 17 were completed and sold. The remaining jobs were in process.

Required:

1. Calculate the activity rates for each of the three overhead activities. If required, round your answers to the nearest cent.

Setup rate	$ _________ per set up
Purchasing rate	$ _________ per part
Other overhead rate	$ _________ per direct labor hour

2. Prepare job-order cost sheets for each job showing all costs through March 31. What is the cost of each job by the end of March?. If an amount is zero, enter "0".

Salazar Company Job-Order Cost Sheets

	Job 15	Job 16	Job 17	Job 18	Job 19
Balance, March 1	$	$	$	$	$f
Direct materials
Direct labor
Applied overhead:
Setups
Purchasing
Other overhead
Total cost

3. Calculate the balance in Work in Process on March 31. $ __________

4. Calculate the cost of goods sold for March.

$ ___________