On March 9, 2018, Job XX4 was completed. The job cost sheet showed a total of $6,000 in direct materials and $8,000 in direct labor at a rate of $20 per direct labor hour. Factory overhead is applied at $30 per direct labor hour. The debit to Finished Goods Inventory to record the completion of Job XX4 is

Question

Quizplus · Accepted Answer

The total cost of Job XX4 includes direct materials, direct labor, and applied factory overhead. Direct materials cost $6,000, direct labor cost $8,000. To find the factory overhead, we divide the direct labor cost by the rate per hour ($8,000 / $20 = 400 hours), then multiply by the overhead rate ($30 * 400 = $12,000). Adding these together ($6,000 + $8,000 + $12,000) gives a total job cost of $26,000.

On March 9, 2018, Job XX4 Was Completed