On March 9 of the current year, Job 123 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. Manufacturing overhead is applied at $30 per direct labour hour. Which debit to Finished Goods Inventory records the completion of Job 123?

Question

Quizplus · Accepted Answer

The total cost of Job 123 includes direct materials ($4,000), direct labor ($6,000), and manufacturing overhead. The direct labor hours are $6,000 / $20 = 300 hours. Manufacturing overhead is $30 per hour, so 300 hours x $30 = $9,000. Total cost = $4,000 + $6,000 + $9,000 = $19,000.

On March 9 of the Current Year, Job 123 Was