Unit Cost, Ending Work$-$in$-$Process Inventory, Journal Entries

During August, Skyler Company worked on three jobs. Data relating to these three jobs follow:

Job $39$ Job $40$ Job $41$

Units in each order $6010080$

Units sold $100$

Materials requisitioned $$700$ $$680$ $$800$

Direct labor hours $360400200$

Direct labor cost $$1,944$ $$2,440$ $$1,220$

Overhead is assigned on the basis of direct labor hours at a rate of $$2\mathrm{.}20$ per direct labor hour. During August, Jobs $39$ and $40$ were completed and transferred to Finished Goods Inventory. Job $40$ was sold by the end of the month. Job $41$ was the only unfinished job at the end of the month.

Required:

Question Content Area

$1.$ Calculate the per$-$unit cost of Jobs $39$ and $40.$ Round unit costs to nearest cent.

$57\mathrm{.}27$ per unit and $40$ per unit

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

$2,460$

$1.$ Manufacturing cost comes from totaling direct materials, direct labor, and overhead on each job. The grand total can be divided by the number of units to determine per$-$unit cost.

$2.$ Determine which jobs are still in work$-$in$-$process and compute the balance.

Question Content Area

$3.$ Prepare the journal entries reflecting $($a$.)$ the completion of Jobs $39$ and $40$ and $($b$.)$ the sale of Job $40.$ Make the entry to record the cost of Job $40$ first, followed by the entry to record the revenue from its sale. The selling price is $120$ percent of cost$.$

a$.$

Finished Goods

$7,436$

Work in Process

$7,436$

b $(1).$

Cost of Goods Sold

$??$

Finished Goods

$??$

b $(2).$

Accounts Receivable

$??$

Sales Revenue

$??$