On April 9, 2011, Job XX4 was completed. The job cost sheet showed a total of £4,000 in direct materials and £6,000 in direct labour at a rate of £20 per direct labour hour. Factory overhead is applied at £30 per direct labour hour. The debit to Finished Goods Inventory to record the completion of Job XX4 is

Question

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The total cost of Job XX4 includes direct materials (£4,000), direct labour (£6,000), and factory overhead. Since the direct labour cost is £6,000 at £20 per hour, there are 300 direct labour hours (6,000 / 20). Factory overhead is applied at £30 per direct labour hour, so the overhead is 300 hours * £30 = £9,000. The total cost is £4,000 + £6,000 + £9,000 = £19,000.

On April 9, 2011, Job XX4 Was Completed