Final answer:
The predetermined manufacturing overhead rate is 50%. The total cost of the completed job is $8,500 and the unit cost is $85. The entry to record the completion of the job is a debit to Finished Goods Inventory for $8,500 and a credit to Work in Process Inventory for $8,500.
Step-by-step explanation:
The predetermined manufacturing overhead rate can be determined by dividing the estimated total manufacturing overhead cost by the estimated total amount of the allocation base. In the job cost sheet provided by Fugate Company, the estimated total manufacturing overhead cost is $20,000 and the estimated total amount of the allocation base is $40,000. Therefore, the predetermined manufacturing overhead rate is $20,000 / $40,000 = 0.5 or 50%.
To calculate the total cost of the completed job, you need to add the direct materials cost, direct labor cost, and the manufacturing overhead cost allocated to the job. In the job cost sheet, the direct materials cost is $4,000, the direct labor cost is $3,000, and the manufacturing overhead cost allocated to the job is $1,500. Therefore, the total cost of the completed job is $4,000 + $3,000 + $1,500 = $8,500.
Lastly, to calculate the unit cost of the completed job, you divide the total cost of the completed job by the number of units produced. In the job cost sheet, the number of units produced is 100. Therefore, the unit cost of the completed job is $8,500 / 100 = $85.
The entry to record the completion of the job would be:
Finished Goods Inventory $8,500
Work in Process Inventory $8,500