On March 9, 2014, Job XX4 was completed. The job cost sheet showed a total of $6,000 in direct materials and $8,000 in direct labor at a rate of $20 per direct labor hour. Factory overhead is applied at $30 per direct labor 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 ($6,000), direct labor ($8,000), and factory overhead. Direct labor hours are $8,000 / $20 = 400 hours. Factory overhead is 400 hours * $30 = $12,000. Total cost = $6,000 + $8,000 + $12,000 = $26,000.

On March 9, 2014, Job XX4 Was Completed