The following information is available for completed Job No.402: Direct materials, $80,000; direct labour, $120,000; manufacturing overhead applied, $60,000; units produced, 5,000 units; units sold, 4,000 units.The cost of the finished goods on hand from this job is

Question

Quizplus · Accepted Answer

The total cost of Job No.402 is the sum of direct materials, direct labor, and manufacturing overhead applied, which equals $80,000 + $120,000 + $60,000 = $260,000 for 5,000 units produced. The cost per unit is $260,000 / 5,000 = $52. Since 1,000 units are unsold (5,000 produced - 4,000 sold), the cost of the finished goods on hand is 1,000 units * $52 per unit = $52,000.

The Following Information Is Available for Completed Job No