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		260		180		270
Units sold				180
Materials requisitioned		$1,976		$972		$2,781
Direct labor hours		286		198		486
Direct labor cost		$3,718		$3,366		$4,180

Overhead is assigned on the basis of direct labor hours at a rate of $9.70 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 953d9f025f8406f_1 per unit
Job 87	$fill in the blank 953d9f025f8406f_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 953d9f025f8406f_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 110 percent of cost. Round your answers to the nearest cent.

Completion of Jobs 86 & 87	Finished Goods	fill in the blank 0841960a207f068_2
	Work in Process		fill in the blank 0841960a207f068_4
Sale of Job 87 (cost)	Cost of Goods Sold	fill in the blank 0841960a207f068_6
	Finished Goods		fill in the blank 0841960a207f068_8
Sale of Job 87 (sale)	Accounts Receivable or Cash	fill in the blank 0841960a207f068_10
	Sales Revenue		fill in the blank 0841960a207f068_12