#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.