Problem: Job Order Cost System
Continental Company uses a job order cost accounting system. During March, three jobs were completed and the costs were computed as follows: job no. 1, $89,000; job no. 2, $58,800; job no. 3, $54,000. As of March 31, the following amounts had been charged to the Work in Process Inventory controlling account in the general ledger:
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Work in Process Inventory
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Balance, Mar. 1
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33,800
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Direct labor
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48,000
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Manufacturing overhead
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83,200
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Direct materials
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72,000
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1. Prepare the general journal entry to reflect the jobs completed during March.
2. Compute the cost of the unfinished jobs at March 31.