EBK CORNERSTONES OF COST MANAGEMENT
4th Edition
ISBN: 8220103648561
Author: MOWEN
Publisher: Cengage Learning US
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Textbook Question
Chapter 5, Problem 15E
On August 1, Cairle Company’s work-in-process inventory consisted of three jobs with the following costs:
During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows:
Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold.
Cairle’s selling and administrative expenses for August were $1,200.
Required:
Prepare an income statement for Cairle Company for August.
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During March, Aragon Company worked on three jobs. Data relating to these three jobs follows:
Over head is assigned on the basis of direct labor hours at a rate of $8.40 per direct labor hour during march, Jobs78 and 79 were completed and transferred to Finished goods inventory. Job 79 was sold by the end of the month. Job 80 was the only unfinished job at the end of the month.
Required
1. Calculate the per unit cost of Jobs 78 and 79
2. Compute the ending balance in the work in process inventory account
3. Prepare the journal entries reflecting the completion of jobs 78 and 79 and the sale of job 79 the selling price is 140 oercent of cost
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Department is:
Multiple Choice
$192,827.
$110,900.
$65,210.
$82,327.
$17,410.
Chapter 5 Solutions
EBK CORNERSTONES OF COST MANAGEMENT
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