Sportly, Inc.completed Job No.B14 during 2013.The job cost sheet listed the following: $$\begin{array} { l r }
\text { Direct materials } & \$ 55,000 \
\text { Direct labor } & \$ 30,000 \
\text { Manufacturing overhead applied } & \$ 20,000 \
\text { Units produced } & 3,000 \text { units } \
\text { Units sold } & 1,800 \text { units }
\end{array}$$ How much is the cost of the finished goods on hand from this job?

Question

Sportly, Inc.completed Job No.B14 during 2013.The job cost sheet listed the following: $$\begin{array} { l r } 
\text { Direct materials } & \$ 55,000 \
\text { Direct labor } & \$ 30,000 \
\text { Manufacturing overhead applied } & \$ 20,000 \
\text { Units produced } & 3,000 \text { units } \
\text { Units sold } & 1,800 \text { units }
\end{array}$$ 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: $55,000 + $30,000 + $20,000 = $105,000. The cost per unit is $105,000 / 3,000 units = $35 per unit. The cost of the finished goods on hand (unsold units) is $35 per unit * (3,000 units - 1,800 units) = $42,000.

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