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		260		160		230
Units sold				160
Materials requisitioned		$1,924		$816		$2,300
Direct labor hours		286		176		391
Direct labor cost		$3,146		$2,816		$3,754

Overhead is assigned on the basis of direct labor hours at a rate of $8.60 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	____
Job 79	____

2. Compute the ending balance in the work-in-process inventory account. Round your answer to the nearest cent.

_____

Feedback

1. When a job is finished, manufacturing cost is computed by totaling direct materials, direct labor, and overhead on each job. If there are multiple units, the grand total can be divided by the number of units to determine per-unit cost.

2. The balance in Work in Process can be computed by summing the costs of all incomplete jobs.

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. Round your answers to the nearest cent.

Completion of Jobs 78 & 79		_____
			_____
Sale of Job 79 (cost)		_____
			_____
Sale of Job 79 (sale)		_____
			_____