During February, Vargas Company worked on three jobs. Data relating to these three jobs follow: Overhead is
Question:
Overhead is assigned on the basis of direct labor hours at a rate of $5.30 per direct labor hour. During February, Jobs 83 and 84 were completed and transferred to finished goods inventory. Job 84 was sold by the end of the month. Job 85 was the only unfinished job at the end of the month.
Required:
1. Calculate the per-unit cost of Jobs 83 and 84.
2. Compute the ending balance in the work-in-process inventory account.
3. Prepare the journal entries reflecting the completion of Jobs 83 and 84 and the sale of Job 84. The selling price is 140 percent ofcost.
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Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
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