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Zain Company produces pipes for concert-quality organs. Each job is unique. In April 2020, it completed all outstanding orders, and then, in May 2020, it
Zain Company produces pipes for concert-quality organs. Each job is unique. In April 2020, it completed all outstanding orders, and then, in May 2020, it worked on only two jobs, M1 and M2:
| Job M1 | Job M2 |
Direct Materials | $ 78,000 | $ 51,000 |
Direct Labor | 273,000 | 208,000 |
Direct manufacturing labor is paid at the rate of $26 per hour. Manufacturing overhead costs are allocated at a budgeted rate of $20 per direct manufacturing labor-hour. Only Job M1 was completed in May.
Instructions:
- Calculate the total cost for Job M1. (1 mark)
- 1,100 pipes were produced for Job M1. Calculate the cost per pipe. (1 mark)
- Prepare the journal entry transferring Job M1 to finished goods. (1 mark)
- What is the ending balance in the Work-in-Process Control account? (1 mark)
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