Answer: To determine the total dollar amount of Finished Goods Inventory at the end of March, we need to calculate the total cost of the jobs that have been completed during March and have been transferred to the Finished Goods Inventory.
From the information given, we know that the company has no beginning Work in Process or Finished Goods inventories, so all the costs incurred during March are related to the jobs started during the month.
Let's start by calculating the total cost of Job 2, which is finished but not sold by the end of March. We will then use this cost to calculate the total cost of the jobs that have been completed during March and transferred to the Finished Goods Inventory.
Job 2:
Direct materials: Rs. 10,000
Direct labor: Rs. 8,000
Overhead applied: 60% x Rs. 10,000 = Rs. 6,000
Total cost of Job 2: Rs. 24,000
Now, let's calculate the total cost of the jobs that have been completed during March:
Job 1:
Direct materials: Rs. 6,000
Direct labor: Rs. 4,000
Overhead applied: 60% x Rs. 6,000 = Rs. 3,600
Total cost of Job 1: Rs. 13,600
Job 3:
Direct materials: Rs. 8,000
Direct labor: Rs. 5,000
Overhead applied: 60% x Rs. 8,000 = Rs. 4,800
Total cost of Job 3: Rs. 17,800
Total cost of jobs completed during March: Rs. 13,600 + Rs. 17,800 = Rs. 31,400
Since the company has no beginning Finished Goods Inventory, the total cost of the jobs completed during March and transferred to the Finished Goods Inventory is equal to the total cost of the Finished Goods Inventory at the end of March.
Therefore, the total dollar amount of Finished Goods Inventory at the end of March is Rs. 31,400.
Explanation: