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The following information is available for completed Job No. 402: Direct materials, $120,000; direct labor, $180,000; manufacturing overhead applied, $90,000; units produced, 5,000 units; units sold, 4,000 units. The cost of the finished goods on hand from this job is?
The following information is available for completed Job No. 402: Direct materials, $120,000; direct labor, $180,000; manufacturing overhead applied, $90,000; units produced, 5,000 units; units sold, 4,000 units. The cost of the finished goods on hand from this job is?
Answer: The cost of the finished goods on hand from this job is $78000.Explanation:Given that,Direct materials, = $120,000Direct labor, = $180,000Manufacturing overhead applied, = $90,000Units produced, = 5,000 unitsUnits sold, = 4,000 unitsTherefore,Cost of finished goods produced = Direct Material + Direct Labor + Manufacturing Overhead= $120,000 + $180,000 + $90,000= $390,000Hence,Per Unit of Cost of finished goods produced === $ 78 per unitCost of finished goods on hand= Inventory × Per unit cost= (Units produced - Units sold) × Per unit cost= 1000 × 78=$78000∴The cost of the finished goods on hand from this job is $78000....
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