Question

Job Costs, Ending Work in Process

During March, Aragon Company worked on three jobs. Data relating to these three jobs follow:

      Job 78       Job 79       Job 80
Units in each order 200   180         220  
Units sold —   180         —  
Materials requisitioned $1,560   $990         $2,400  
Direct labor hours 220   200         400  
Direct labor cost $3,000   $3,000         $3,300  

Overhead is assigned on the basis of direct labor hours at a rate of $8.40 per direct labor hour. During March, Jobs 78 and 79 were completed and transferred to Finished Goods Inventory. Job 79 was sold by the end of the month. Job 80 was the only unfinished job at the end of the month.

Required:

1. Calculate the per-unit cost of Jobs 78 and 79. Round your answers to the nearest cent.

Job 78 $ per unit
Job 79 $ per unit

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

3. Prepare the journal entries reflecting the completion of Jobs 78 and 79 and the sale of Job 79. The selling price is 140 percent of cost.

Completion of
Jobs 78 & 79

Accounts Receivable
Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process

Accounts Receivable
Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process

Sale of
Job 79 (cost)

Accounts Receivable
Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process

Accounts Receivable
Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process

Sale of
Job 79 (sale)

Accounts Receivable or Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process

Accounts Receivable or Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process

Answer 1

PART-1)

	For job 78	For job 79
Direct Materials	$1,560	$990
Direct labor	$3,000	$3,000
Overhead	$1,848	$1,680
Total cost	$6,408	$5,670
per-unit cost	$32.04	$31.50

　

PART-2)

	For job 78
Direct Materials	$2,400
Direct labor	$3,300
Overhead	$3,360
Work in process Account	$9,060

　

PART-3)

Dr. Dinished Goods	$12,078
Cr. Work-in-process inventory		$12,078
Dr. Accounts Receivable	$7,938
Cr. Sales Revenue		$7,938
Dr. COGS	$5,670
Cr. Finished Goods		$5,670