Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 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 200 180 220
Units sold — 180 —
Materials requisitioned $1,560 $990 $2,400
Direct labor hours 220 200 400
Direct labor cost $3,000 $3,000 $3,300

Overhead is assigned on the basis of direct labor hours at a rate of $8.40 per direct labor hour. During March, Jobs 78 and 79 were completed and transferred to the 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 $ per unit
Job 79 $ per unit

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

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.

Completion of
Jobs 78 & 79

Accounts Receivable
Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process

Accounts Receivable
Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process

Sale of
Job 79 (cost)

Accounts Receivable
Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process

Accounts Receivable
Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process

Sale of
Job 79 (sale)

Accounts Receivable or Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process

Accounts Receivable or Cash
Cost of Goods Sold
Finished Goods
Sales Revenue
Work in Process

Step by Step Solution

3.43 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

PART1 Direct Materials Direct labor Overhead To... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones Of Cost Management

Authors: Don R. Hansen, Maryanne M. Mowen

3rd Edition

9781305147102, 1285751787, 1305147103, 978-1285751788

More Books

Students also viewed these Accounting questions