UNIT COST, ENDING WORK IN PROCESS, JOURNAL ENTRIES
During August, Pamell Inc. worked on two jobs. Data relating to these two jobs follow:
| |
Job 64 |
Job 65 |
|
Units in each order
|
50
|
100
|
|
Units sold
|
50
|
-
|
|
Materials requisitioned
|
$1,240
|
$985
|
|
Direct labor hours
|
410
|
583
|
|
Direct labor cost
|
$6,150
|
$8,745
|
Overhead is assigned on the basis of direct labor hours at a rate of $12. During Au- gust, Job 64 was completed and transferred to Finished Goods. Job 65 was the only unfinished job at the end of the month.
Required:
1. Calculate the per-unit cost of Job 64.
2. Compute the ending balance in the work-in-process account.
3. Prepare the journal entries reflecting the completion and sale on account of Job 64. The selling price is 160 percent of cost.