Job #2333 incurred the following during production:
The following data is also available for the company:
The company incurs costs at the following rates:
Given this information, what was the total cost of the job that was transferred from Work in Process Inventory to the Finished Goods Inventory?

Question

Job #2333 incurred the following during production:
 The following data is also available for the company:
 The company incurs costs at the following rates:
 Given this information, what was the total cost of the job that was transferred from Work in Process Inventory to the Finished Goods Inventory?

Quizplus · Accepted Answer

Total cost of the job = Direct materials (both manufacturing and packaging) + Direct Labor (includes both manufacturing and packaging) + Overhead (allocated based on manufacturing labor dollars).
Materials = $4,000 + $100 = $4,100
Labor:
Manufacturing: 25 hours @ $20/hour = $500
Packaging: 0.5 hours @ $15/hour = $7.50
Total = $507.50
Overhead: $500 @ $30/dollar of direct labor = $15,000
Total cost = 4,100+ 507.50 + 15,000 = $19,607.50

Job #2333 Incurred the Following During Production