Job costing, unit cost, ending work in process. Raymond Company produces pipes for concert- quality organs. Each job is unique. In April 2009, it completed all outstanding orders, and then, in May 2009, it worked on only two jobs, Ml and M2:

Direct manufacturing labor is paid at the rate of $25 per hour. Manufacturing overhead costs are allocated at a budgeted rate of $20 per direct manufacturing labor-hour. Only Job Ml was completed in May. If you want to use Excel to solve this exercise, go to the Excel Lab at www.prenhall.com/horngren/costl3e and download the template for Exercise 4-27.

1. Compute the total cost for Job Ml.

2. 1,500 pipes were produced for Job Ml. Calculate the cost per pipe.

3. Prepare the journal entry transferring Job Ml to finished goods.

4. What is the ending balance in the Work-in-Process Control account?

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Job M1 Job M2 Raymond Company, May 2009 2 Direct materials 3 Direct manufacturing labor $ 75,000 275,000 $ 50,000 200,000