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 88Units in each order 250 240 300 Units sold 240 Materials requisitioned $1,550 $1,368 $3,450 Direct labor hours 275 264 480 Direct labor cost $3,025 $3,432 $4,416

Overhead is assigned on the basis of direct labor hours at a rate of $8.00 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:

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

Job 86 Job 87

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

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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 & 87Accounts ReceivableCashCost of Goods SoldFinished GoodsSales RevenueWork in Process- Select - Accounts ReceivableCashCost of Goods SoldFinished GoodsSales RevenueWork in Process - Select -Sale of Job 87 (cost)Accounts ReceivableCashCost of Goods SoldFinished GoodsSales RevenueWork in Process- Select - Accounts ReceivableCashCost of Goods SoldFinished GoodsSales RevenueWork in Process - Select -Sale of Job 87 (sale)Accounts Receivable or CashCost of Goods SoldFinished GoodsSales RevenueWork in Process- Select - Accounts Receivable or CashCost of Goods SoldFinished GoodsSales RevenueWork in Process - Select