Question

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 Aug. 31 journal entries reflecting the completion and sale on account of Job 64. The selling price is 175% of cost. Refer to the chart of accounts for account titles. Round all journal entry amounts to the nearest dollar.

1. Calculate the per-unit cost of Job 64.

The per-unit cost of Job 64 is .

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

The ending balance in the work-in-process account is .

3. Prepare the Aug. 31 journal entries reflecting the completion and sale on account of Job 64. The selling price is 175% of cost. Refer to the Chart of Accounts for the exact wording of account titles. Round all journal entry amounts to the nearest dollar.

PAGE 1

GENERAL JOURNAL

	DATE	ACCOUNT	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6

Answer 1

Answer:

1) Per unit cost of job 64 = (3,560+6,720+(410*11))/50= $295.8 per unit

2) Ending work in process account = (785+9,328+(583*11)) = $16,526

3) GENERAL JOURNAL
Date	Account and explanation	debit($)	credit($)
Aug. 31	Finished goods($295.8*50)	14,790
	Work in process		14,790
	(To record completion of Job 64)
Aug. 31	Account Receivable (14,790*175%)	25,882.50
	Sales revenue		25,882.50
	(To record sales of Job 64)
Aug. 31	Cost of goods sold	14,790
	Finished goods		14,790
	(To record cost of goods sold for Job 64)