Sportly, Inc. completed Job No. B14 during 2017. The job cost sheet listed the following: $$\begin{array} { l r }
\text { Direct materials } & \$ 110,000 \
\text { Direct labor } & 60,000 \
\text { Manufacturing overhead applied } & 40,000 \
\text { Units produced } & 3,000 \text { units } \
\text { Units sold } & 1,800 \text { units }
\end{array}$$ How much is the cost of the finished goods on hand from this job?

Question

Sportly, Inc. completed Job No. B14 during 2017. The job cost sheet listed the following: $$\begin{array} { l r } 
\text { Direct materials } & \$ 110,000 \
\text { Direct labor } & 60,000 \
\text { Manufacturing overhead applied } & 40,000 \
\text { Units produced } & 3,000 \text { units } \
\text { Units sold } & 1,800 \text { units }
\end{array}$$ How much is the cost of the finished goods on hand from this job?

Quizplus · Accepted Answer

The total cost of the job is $210,000 ($110,000 + $60,000 + $40,000). The cost per unit is $70 ($210,000 / 3,000 units). The cost of the finished goods on hand is for the unsold units: 1,200 units (3,000 produced - 1,800 sold) x $70 = $84,000.

Sportly, Inc How Much Is the Cost of the Finished Goods on Cost