Question

#5-18

Feldspar Company uses an ABC system to apply overhead. There are three activity rates, shown.

Setting up	$20 per setup
Machining	$5.10 per machine hour
Other overhead	80% of direct labor cost

During September, Feldspar worked on three jobs. Data relating to these jobs follow:

	Job 13-280	Job 13-281	Job 13-282
Units in each order	200	500	100
Units sold	200	—	100
Materials requisitioned	$4,730	$3,800	$5,600
Direct labor cost	$2,000	$4,600	$   800
Machine hours	80	100	40
Number of setups	20	15	25

During September, Jobs 13-280 and 13-282 were completed and transferred to Finished Goods Inventory. Job 13-280 was sold by the end of the month. Job 13-281 was the only unfinished job at the end of the month.

Instructions:

1). Calculate the per-unit cost of Jobs 13-280 and 13-282. (Round unit cost to nearest cent.)

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

3). Prepare the journal entries reflecting the completion of Jobs 13-280 and 13-282 and the sale of Job 13-280 on account. The selling price is 150 percent of cost.

Answer 1

1. Calculate the per-unit cost of Jobs 13-280 and 13-282. (Round unit cost to nearest cent.)

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

3. Prepare the journal entries reflecting the completion of Jobs 13-280 and 13-282 and the sale of Job 13-280 on account. The selling price is 150 percent of cost.

Refer to the below images for the above asked questions, in a detailed way of solution with calculations.

bent : por- unit cost of calculate the and 13-282. jobs 13-280 Reqrirement a Job 13-28 : particulars Amount Amount 6 4730 2000 Direct Materials Direct labor Applied overhead a - Setting up - Machining - other overhead Goral Job cast $ 400 408 1600 2408 $9138 * unit cost = 89138/200 = $45069 per unit job 13-282: particulars Amount Amount $5600 800 Dirut materials Direct labor Applied overhead: - Setting up - Machining - other overhead Total Job cost Joo 204 640 13५५ $7744 & Unit cost = $7744/100 – $77•44 per unit

compute process in the work-in- the ending inventory balance account: Requirement Job 13-2810 Amount Amount $3800 460o particulars Direct Materials Direct labor Applied overhead: - Setting up - Machining - other overhead $ 300 510 * 3680 4490 $12890 Ending work in process > : n prepare of jobs 13-280 percent the journal entries 13-280 and 13-282 on account. The of cast reflecting the and the sale selling price is Rewoitement completion of Job 150 particulars Debit credit 1. $ 16882 $16882 Finished goods atc or To work in process Alc @ $9138 + $7744 - $ 16882 Cost $9138 of To goods sold Alc Dr finished goods Ak $9138 & 13707 Accounts To Receivable Ale or sales Revenue Alc $13707 & _ $9138 x 150%. = $13707 —. —