P 8. 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
Materials Inventory $27,450
Work in Process Inventory 22,900
Finished Goods Inventory 19,200
Direct materials purchased and received
February 6 $ 7,200
February 12 8,110
February 24 5,890
Direct labor costs
February 14 $13,750
February 28 13,230
Direct materials requested for production
February 4 $ 9,080
February 13 5,940
February 25 7,600
View PDF

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

Job No. Direct Materials Direct Labor Overhead
AJ-10 $3,220 $1,810 $2,534
AJ-14 3,880 2,110 2,954
AJ-15 2,980 1,640 2,296
AJ-16 4,690 2,370 3,318
View PDF

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.


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.
Compute the cost of units completed during the month.
What was the total cost of goods sold during February?
Determine the ending balances in the inventory accounts.
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).