Problem1 (22 points) MZW Company uses an ABC system to apply overhead. There are three activity...

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Problem1 (22 points) MZW Company uses an ABC system to apply overhead. There are three activity rates Purchasing Machining Other overhead $30 per purchase order $5 per machine hour 60% of direct labor cost During August, MZW worked on three jobs Data relating to these jobs follow Job 90 Job 91 Job 92 Units in each order 110 400 100 Units sold 110 Materials requisitioned $1,730 $3,000 Direct labor cost $2,000 $4,600 Machine hours 60 40 $1,200 5800 20 Purchase orders 20 16 25 During August, Jobs 90 and 92 were completed and transferred to finished goods inventory Job 90 was sold by the end of the month. Job 91 was the only unfinished job at the end of the month. a. Calculate the per-unit cost of Jobs 90 and 92. Why is the cost per unit of Job 90 higher or lower than the cost per unit of Job 927 (12 pts) b. What is the cost of goods sold for the given period? (4 pts) c. Compute the ending balance in the work-in-process inventory account. (6 pts) Job Job 92 Problem1 (22 points) MZW Company uses an ABC system to apply overhead. There are three activity rates Purchasing Machining Other overhead $30 per purchase order $5 per machine hour 60% of direct labor cost During August, MZW worked on three jobs Data relating to these jobs follow Job 90 Job 91 Job 92 Units in each order 110 400 100 Units sold 110 Materials requisitioned $1,730 $3,000 Direct labor cost $2,000 $4,600 Machine hours 60 40 $1,200 5800 20 Purchase orders 20 16 25 During August, Jobs 90 and 92 were completed and transferred to finished goods inventory Job 90 was sold by the end of the month. Job 91 was the only unfinished job at the end of the month. a. Calculate the per-unit cost of Jobs 90 and 92. Why is the cost per unit of Job 90 higher or lower than the cost per unit of Job 927 (12 pts) b. What is the cost of goods sold for the given period? (4 pts) c. Compute the ending balance in the work-in-process inventory account. (6 pts) Job Job 92