Chapter 4, Problem 59P

(Appendix 4A) Unit Cost, Ending Work in Process, Journal Entries

During August, Leming Inc. worked on two jobs. Data relating to these two jobs follow:

Overhead is assigned on the basis of direct labor hours at a rate of $11. During August, Job 64 was completed and transferred to Finished Goods. Job 65 was the only unfinished job at the end of the month.

Required:

1. 1. Calculate the per-unit cost of Job 64.
2. 2. Compute the ending balance in the work-in-process account.
3. 3. Prepare the journal entries reflecting the completion and sale on account of Job 64. The selling price is 175% of cost. (Note: Round all journal entry amounts to the nearest dollar.)