Job costing, unit cost, ending work in process, Rafael Company produces pipes fo

Question

Job costing, unit cost, ending work in process, Rafael Company produces pipes for concert-quality organs. Each job is unique In April 2013, it completed all outstanding orders, and then, in May 2013, it worked on only two jobs. M1 and M2: 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. 1. Calculate the total cost for Job M1. 2. 1,100 pipes were produced for Job M1. Calculate the cost per pipe. 3. Prepare the journal entry transferring Job M1 to finished goods. 4. What is the ending balance in the Work-in-Process Control account?

Explanation / Answer

Total Cost of Job M1 Particulars Hrs Cost Direct Materials          78,000 Direct Labour @ 26/Hr        273,000     7,098,000 Manufacturing Overhead @ 20/Hr        273,000     5,460,000 Total Cost 12,636,000 Cost Per Pipe Total Cost 12,636,000 Units / Pipes            1,100 Cost per Pipe          11,487 Journal Entry: Debit Credit Finished Goods 12,636,000 To Work in process Job M1 12,636,000 Ending balance of Job M1 work in progress is Zero, Sicne transferred to Finished Goods

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