Question

The following information is available for completed Job No. 402:

Direct materials $170000
Direct labor $230000
Manufacturing overhead applied $160000
Units produced 8000 units
Units sold 6000 units.

The cost of the finished goods on hand from this job is:________

a. $420000.
b. $140000.
c. $560000.
d. $100000.

Answer 1

b. $140000.

Step-by-step explanation:

We know that

cost of finished goods in stock= (total production cost ÷ number of units produced)×number of units unsold

= [(170000+230000+160000)/8000]*(8000-6000)

= $140000

Option b) is the correct answer