Question:
JOB COSTS, ENDING WORK IN PROCESS During March, Molson Company worked on three jobs. Data relating to these three jobs follow:
|
Job 62
|
Job 63
|
Job 64
|
|
Units in each order
|
110
|
200
|
165
|
|
Units sold
|
-
|
200
|
-
|
|
Materials requisitioned
|
$560
|
$740
|
$1,600
|
|
Direct labor hours
|
260
|
300
|
500
|
|
Direct labor cost
|
$3,120
|
$3,600
|
$6,000
|
Overhead is assigned on the basis of direct labor hours at a rate of $7 per direct labor hour. During March, Jobs 62 and 63 were completed and transferred to finished goods inventory. Job 63 was sold by the end of the month. Job 64 was the only unfinished job at the end of the month.
Required:
1. Calculate the per-unit cost of Jobs 62 and 63.
2. Compute the ending balance in the work-in-process inventory account.
3. Prepare the journal entries reflecting the completion of Jobs 62 and 63 and the sale of Job 63. The selling price is 140 percent of cost.