Question

Daffodil Company is into manufacturing a wide variety of unique products. During April, Daffodil worked on Job 20. Given below is the information related to Job 20.

Job 20
Beginning balance $500
Materials requisitioned 4,500
Direct labor cost 2,250
Overhead is assigned at the rate of 60 percent of direct labor cost. From the provided information, calculate the total cost of Job 20.
a) $9,750
b) $10,200
c) $12,750
d) $11,250

Answer 1

The total cost of Job 20 for the Daffodil Company is calculated by adding the beginning balance, materials requisitioned, direct labor cost, and overhead. After calculating these amounts, the total cost is $8,600, which does not match any of the provided answer options.

Step-by-step explanation:

To calculate the total cost of Job 20 for the Daffodil Company, a manufacturing company that produces a wide variety of products, we need to sum up the beginning balance, the cost of materials requisitioned, direct labor cost, and the overhead assigned. The overhead is given as 60 percent of the direct labor cost. Here's the calculation:

Adding these amounts together gives us the total cost of Job 20:

$500 (Beginning balance) + $4,500 (Materials) + $2,250 (Direct labor) + $1,350 (Overhead) = $8,600

However, none of the provided options (a) $9,750 (b) $10,200 (c) $12,750 (d) $11,250 match this calculated total cost of $8,600. It looks like there may be an error with the provided options or the calculations.