Figure 5-6.Stutz, Inc. designs and builds basketball gymnasiums. Each gymnasium is custom-built to individual customers' specifications. Stutz uses job-order costing to keep track of its costs. In February it worked on three jobs. Data for these jobs are as follows:
Overhead is applied to jobs at the rate of $25 per machine hour. By February 28, Job 178 is the only one unfinished. The balance of Finished Goods on February 1 is $94,000 (consisting of Job 177). Jobs 177 and 179 are sold during February. Stutz sells its product at cost plus 40%.
-Refer to Figure 5-6. Calculate the balance of Finished Goods at February 28.

Question

Figure 5-6.Stutz, Inc. designs and builds basketball gymnasiums. Each gymnasium is custom-built to individual customers' specifications. Stutz uses job-order costing to keep track of its costs. In February it worked on three jobs. Data for these jobs are as follows:
  Overhead is applied to jobs at the rate of $25 per machine hour. By February 28, Job 178 is the only one unfinished. The balance of Finished Goods on February 1 is $94,000 (consisting of Job 177). Jobs 177 and 179 are sold during February. Stutz sells its product at cost plus 40%.
-Refer to Figure 5-6. Calculate the balance of Finished Goods at February 28.

Quizplus · Accepted Answer

Finished Goods has a beginning balance of $39,500, add $23,790 of production costs, and subtract $0 of COGS, for an ending balance of $63,290.