Sportly, Inc.finished Job B14 during 2016.The job cost sheet listed the following: $\begin{array}{lr}
\text { Direct materials } &\$66,000\
\text { Direct labour } &\$36,000\
\text { Manufacturing overhead applied } &\$24,000\
\text { Units produced} &3,000\text { units }\
\text {Units sold } &1,800\text { units }\
\end{array}$
How much is the cost of the finished goods on hand from this job?

Question

Sportly, Inc.finished Job B14 during 2016.The job cost sheet listed the following: $\begin{array}{lr}
  \text { Direct materials } &\$66,000\
 \text { Direct labour } &\$36,000\
 \text { Manufacturing overhead applied } &\$24,000\
 \text {  Units produced} &3,000\text { units }\
 \text {Units sold  } &1,800\text { units }\
\end{array}$
 How much is the cost of the finished goods on hand from this job?

Quizplus · Accepted Answer

The total cost of the job is 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. Since 1,800 units were sold, 1,200 units remain in finished goods. The cost of the finished goods on hand is 1,200 units * $42 per unit = $50,400.

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