Job Costs, Ending Work in Process

During March, Estes Company worked on three jobs. Data relating to these three jobs follow:

		Job 86		Job 87		Job 88
Units in each order		150		230		250
Units sold				230
Materials requisitioned		$1,110		$1,265		$2,600
Direct labor hours		165		253		400
Direct labor cost		$1,980		$3,542		$3,600

Overhead is assigned on the basis of direct labor hours at a rate of $9.50 per direct labor hour. During March, Jobs 86 and 87 were completed and transferred to Finished Goods Inventory. Job 87 was sold by the end of the month. Job 88 was the only unfinished job at the end of the month.

Required:

1. Calculate the per-unit cost of Jobs 86 and 87. Round your answers to the nearest cent.

Job 86	$fill in the blank 652b1802e00ffdb_1 per unit
Job 87	$fill in the blank 652b1802e00ffdb_2 per unit

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

$fill in the blank 652b1802e00ffdb_3

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 86 and 87 and the sale of Job 87. The selling price is 140 percent of cost. Round your answers to the nearest cent.

Completion of Jobs 86 & 87	Accounts ReceivableCashCost of Goods SoldFinished GoodsSales RevenueWork in ProcessFinished Goods	Finished Goods
	Accounts ReceivableCashCost of Goods SoldFinished GoodsSales RevenueWork in ProcessWork in Process		Work in Process
Sale of Job 87 (cost)	Accounts ReceivableCashCost of Goods SoldFinished GoodsSales RevenueWork in ProcessCost of Goods Sold	Cost of Goods Sold
	Accounts ReceivableCashCost of Goods SoldFinished GoodsSales RevenueWork in ProcessFinished Goods		Finished Goods
Sale of Job 87 (sale)	Accounts Receivable or CashCost of Goods SoldFinished GoodsSales RevenueWork in ProcessAccounts Receivable or Cash	Accounts Receivable or Cash
	Accounts Receivable or CashCost of Goods SoldFinished GoodsSales RevenueWork in ProcessSales Revenue		Sales Revenue