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Activity$-$Based Costing, Unit Cost, Ending Work$-$in$-$Process Inventory, Journal Entries

Feldspar Company uses an ABC system to apply overhead. There are three activity rates:

Setting up $$25$ per setup

Machining $$5\mathrm{.}20$ per machine hour

Other overhead $70\%$ 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 $200510100$

Units sold $200100$

Materials requisitioned $$4,720$ $$3,700$ $$5,800$

Direct labor cost $$2,000$ $$4,700$ $$800$

Machine hours $8010040$

Number of setups $201525$

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.

Required:

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$1.$ Calculate the per$-$unit cost of Jobs $13-280$ and $13-282.$ Round unit cost to nearest cent.

Job $13-280$ $fill in the blank $5$dcf$2100307607$a$\_1$

$45\mathrm{.}18$

per unit

Job $13-282$ $fill in the blank $5$dcf$2100307607$a$\_2$

$79\mathrm{.}93$

per unit

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

$fill in the blank $5$dcf$2100307607$a$\_3$

$13,385$

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$1.$ Manufacturing cost comes from totaling direct materials, direct labor, and overhead on each job. The grand total can be divided by the number of units to determine per$-$unit cost. ABC system was used to apply Overhead.

$2.$ Determine which jobs are still in work$-$in$-$process and compute the balance.

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$3.$ Prepare the journal entries reflecting $($a$.)$ the completion of Jobs $13-280$ and $13-282$ and $($b$.)$ the sale of Job $13-280$ on account. Make the entry to record the cost of Job $13-280$ first, followed by the entry to record the revenue from its sale. The selling price is $150$ percent of cost$.$

a$.$

Finished

Work in Process

b $(1).$

Cost of Goods Sold

Finished Goods

b $(2).$

Accounts Receivable

Sales Revenue