Chapter 5 Homework

110 220 Job Costs, Ending Work in Process During March, Estes Company worked on three jobs. Data relating to these three jobs fullow: Job 86 Job 87 Job 88 Units in each order 200 Units sold 180 Materials requisitioned $3.500 $950 $2,400 Direct labor hours 220 190 400 Direct labor cost $4,400 $3,600 $8,000 Overhead is assigned on the basis of direct labor hours at a rate of $8.40 per direct labor hour. During March, Jobs 86 and 87 were completed and transferred to Finished Goods Twentory, Job 87 was sold by the end of the month Job 88 was the only unfinished job at the end of the month Required: 1. Calculate the per-unit cost of Jobs 86 and 87. Round your answers to the nearest cent. Job 86 3 49.04 per unit Job 87 36.68 X per unit 2. Compute the ending balance in the work-in-process inventory account $ 13,760 Feedback Choos No Wuh 1. When a job is finished, manufacturing cost is computed by totaling direct materials, direct labor, and overhead on each job. If there are multiple units, the grand total can be divided by the number of units to determine per-unit cost. 2. The balance in Work in Process can be computed by summing the costs of all incomplete jabs. 3. Prepare the journal entries reflecting the completion of Jobs 86 and 87 and the sale of Joh 87. The selling price is 150 percent of cost. Completion of Finished Goods 15,870 Jobs BS & B7 Work in Process ISATI Sale of Job 87 (c) Cost of Good Sold 6.162 Finished Goods 6,062 9.193 Sale of Job 37 (sle) Accounts Receivable or Cash 87 Sales Revenue 9,093