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 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

Quizplus · Accepted Answer

The total cost of Job XX4 includes direct materials, direct labor, and applied factory overhead. Direct labor cost is $6,000, which at $20 per hour means 300 labor hours. Factory overhead is applied at $30 per hour, so 300 hours x $30 = $9,000 in overhead. Total cost = $4,000 (materials) + $6,000 (labor) + $9,000 (overhead) = $19,000.

On April 9, 2011, Job XX4 Was Completed