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.Factory overhead is applied at $30 per direct labour hour.Which of the following debits to finished goods inventory records the completion of Job 123?

Question

Quizplus · Accepted Answer

The total cost of Job 123 includes direct materials, direct labor, and applied factory overhead. Direct materials cost $4,000, direct labor cost $6,000 (calculated from the given information), and factory overhead is applied at $30 per direct labor hour. To find the factory overhead, divide the direct labor cost by the rate per hour ($6,000 / $20 = 300 hours), then multiply by the overhead rate (300 hours * $30 = $9,000). Adding these together ($4,000 + $6,000 + $9,000) gives a total job cost of $19,000.

On March 9 of the Current Year,Job 123 Was Completed