Question

On March 9, 2014 Job XX4 was completed. The job cost sheet showed a total of $6,000 in direct materials and $8,000 in direct labor at a rate of $20 per direct labor hour. Factory overhead is applied at $30 per direct labor hour. The debit to Finished Goods Inventory to record the completion of Job XX4 is

a. $26,000.
b. $6,000.
c. $11.000.
d. $17,000.

Answer 1

The debit to Finished Goods Inventory to record the completion of Job XX4 is $26,000.

Step-by-step explanation:

To calculate the debit to Finished Goods Inventory to record the completion of Job XX4, we need to sum up the costs of direct materials, direct labor, and factory overhead. The direct materials cost was $6,000, the direct labor cost was $8,000 (at a rate of $20 per direct labor hour), and the factory overhead cost was calculated using the same direct labor hours at a rate of $30 per hour. Let's calculate:

Direct materials = $6,000

Direct labor = $8,000

Factory overhead = Direct labor hours x Overhead rate = (Direct labor cost / Direct labor rate) x Overhead rate = ($8,000 / $20) x $30 = $12,000The total cost of Job XX4 is obtained by summing up the direct materials, direct labor, and factory overhead costs:Total cost = Direct materials + Direct labor + Factory overhead = $6,000 + $8,000 + $12,000 = $26,000Therefore, the correct answer is option a. $26,000.