Sportly, Inc.finished Job B14 during 2020.The job cost sheet listed the following: $\begin{array}{ll}
\text { Direct materials } &\$66,000\
\text { Direct labour } &\$36,000\
\text { Manufacturing overhead applied } &\$24,000\
\text { Units produced } &\ \text { 3,000 units } \
\text {Units sold } & \text {1,800 units } \
\end{array}$
How much is the cost of the finished goods on hand from this job?

Question

Sportly, Inc.finished Job B14 during 2020.The job cost sheet listed the following: $\begin{array}{ll}
  \text { Direct materials } &\$66,000\
 \text { Direct labour } &\$36,000\
 \text { Manufacturing overhead applied } &\$24,000\
 \text { Units produced } &\ \text { 3,000 units } \
 \text {Units sold  } & \text {1,800 units } \
\end{array}$
 How much is the cost of the finished goods on hand from this job?

Quizplus · Accepted Answer

The total cost of the job is the sum of direct materials, direct labor, and manufacturing overhead applied: $66,000 + $36,000 + $24,000 = $126,000. The cost per unit is $126,000 / 3,000 units = $42 per unit. The cost of the finished goods on hand (unsold units) is $42 per unit * (3,000 units - 1,800 units) = $42 * 1,200 units = $50,400.

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