Question

The following infomrtation is avaialiable for completed job no. 402:

direct materials, $170000;
direct labor $230000;
manufacturing overhead applied, $160000;
units produces, 500 units,
units sold 4,000 units.
1. The cost of the finished goods on hand from this job is ___________.

Answer 1

The cost of the finished goods on hand from the job number 402. $ 112,000.

Step-by-step explanation:

To determine the cost of good in hand we shall first compute number of units in hand and per unit cost of production. Than by talking product of these two values we can determine cost of the finished goods on hand.

FG in hands = 5,000 - 4,000 = 1000 units -A

Cost per unit = (170,000+230,000+160,000)/5000 = $ 112 per unit -B

Cost of FG on hand = ( A* B) = $ 112,000