During March, Estes Company worked on three jobs. Data relating to these three jobs follow: Job 87 Job 88 240 240 111 $1,140 $1,368 165 264 $3,432 Units in each order Units sold Materials requisitioned Direct labor hours Direct labor cost Job 86 150 210 $2,499 315 $1,815 $2,835 Overhead is assigned on the basis of direct labor hours at a rate of $8.50 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
Completion of
Jobs 86 & 87
per unit
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.
Sale of
Job 87 (cost)
per unit
Sale of
Job 87 (sale)
Transcribed Image Text: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. Completion of Jobs 86 & 87 per unit 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. Sale of Job 87 (cost) per unit Sale of Job 87 (sale)
During March, Estes Company worked on three jobs. Data relating to these three jobs follow:
Job 86
Job 87
150
240
240
$1,368
264
$3,432
Units in each order
Units sold
Materials requisitioned
Direct labor hours
Direct labor cost
$1,140
165
$1,815
Job 88
210
$2,499
315
$2,835
Overhead is assigned on the basis of direct labor hours at a rate of $8.50 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.
Transcribed Image Text:During March, Estes Company worked on three jobs. Data relating to these three jobs follow: Job 86 Job 87 150 240 240 $1,368 264 $3,432 Units in each order Units sold Materials requisitioned Direct labor hours Direct labor cost $1,140 165 $1,815 Job 88 210 $2,499 315 $2,835 Overhead is assigned on the basis of direct labor hours at a rate of $8.50 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.
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