Question:
UNIT COST, ENDING WORK-IN-PROCESS INVENTORY, JOURNAL ENTRIES During October, Molson Company worked on three jobs. Data relating to these three jobs follow:
|
Job 43
|
Job 44
|
Job 45
|
|
Units in each order
|
120
|
200
|
165
|
|
Units sold
|
-
|
200
|
-
|
|
Materials requisitioned
|
$744
|
$640
|
$600
|
|
Direct labor hours
|
360
|
400
|
200
|
|
Direct labor cost
|
$1,980
|
$2,480
|
$1,240
|
Overhead is assigned on the basis of direct labor hours at a rate of $5.30 per direct labor hour. During October, Jobs 43 and 44 were completed and transferred to finished goods inventory. Job 44 was sold by the end of the month. Job 45 was the only unfinished job at the end of the month.
Required:
1. Calculate the per-unit cost of Jobs 43 and 44.
2. Compute the ending balance in the work-in-process inventory account.
3. Prepare the journal entries reflecting the completion of Jobs 43 and 44 and the sale of Job 44. The selling price is 140 percent of cost.