Question

Marigold corp. completed job no. b14 during 2019. The job cost sheet listed the following:

Direct materials $55,000Direct labor $30,000Manufacturing overhead applied $27,000Units produced 4,000 unitsUnits sold 1,500 units1. How much is the cost of the finished goods on hand from this job?

Answer 1

$70,000

Step-by-step explanation:

Total Cost:

= Direct materials + Direct labor + Manufacturing overhead applied

= $55,000 + $30,000 + $27,000

= $112,000

Units produced = 4,000 units

Units sold = 1,500 units

Unit Cost = Total Cost ÷ Units produced

= $112,000 ÷ 4,000

= $28 per unit

Stock in Hand:

= Units produced - Units sold

= 4,000 - 1,500

= 2,500

cost of the finished goods on hand:

= Stock in Hand × Unit Cost

= 2,500 × $28 per unit

= $70,000