Problem 5-52 (Appendix 5A) Unit Cost, Ending Work in Process, Journal Entries
During August, Leming Inc. worked on two jobs. Data relating to these two jobs follow:
|
Job 64
|
Job 65
|
|
Units in each order
|
50
|
80
|
|
Units sold
|
50
|
-
|
|
Materials requisitioned
|
$3,560
|
$785
|
|
Direct labor hours
|
410
|
583
|
|
Direct labor cost
|
$6,720
|
$9,328
|
Overhead is assigned on the basis of direct labor hours at a rate of $11. During August, 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 sell- ing price is 175% of cost. (Note: Round all journal entry amounts to the nearest dollar.)