laurence norton is the chief financial officer of rotham industries a company that m 542832

Job Order Cost Flow

Laurence Norton is the chief financial officer of Rotham Industries, a company that makes special-order sound systems for home theaters. His records for February revealed the following information:

Beginning inventory balances

Direct materials purchased and received

Direct labor costs

Direct materials requested for production

Job order cost cards for jobs in process on February 28 had the following totals:

The predetermined overhead rate for the month was 140 percent of direct labor costs. Sales for February totaled $152,400, which represented a 70 percent markup over the cost of production.

Required

1. Using T accounts for Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Overhead, Accounts Receivable, Payroll Payable, Sales, and Cost of Goods Sold, reconstruct the transactions in February.

2. Compute the cost of units completed during the month.

3. What was the total cost of goods sold during February?

4. Determine the ending balances in the inventory accounts.

5. During the first week of March, Jobs AJ-10 and AJ-14 were completed.

No additional direct materials costs were incurred, but Job AJ-10 needed $720 more of direct labor, and Job AJ-14 needed an additional $1,140 of direct labor. Job AJ-10 was 40 units; Job AJ-14, 55 units. Compute the product unit cost for each completed job (round to two decimal places).