Figure 5-5 Wright Corporation had the following information available for December 2011:
Factory overhead rate is 150 percent of direct labor costs.
Job cost sheets had the following balances:
Jobs Z3 and Z4 were not completed at the end of December.
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Refer to Figure 5-5.What is the cost of goods finished during December for Wright Corporation?

Question

Figure 5-5 Wright Corporation had the following information available for December 2011:
 Factory overhead rate is 150 percent of direct labor costs.
Job cost sheets had the following balances:
 Jobs Z3 and Z4 were not completed at the end of December.
-
Refer to Figure 5-5.What is the cost of goods finished during December for Wright Corporation?

Quizplus · Accepted Answer

To calculate the cost of goods finished during December, we need to sum up the total costs of all jobs that were completed in December. Based on the job cost sheets, the completed job costs for December were:

Job X1: $30,000
Job X2: $22,500
Job Z1: $15,000

Total cost of goods completed in December: $30,000 + $22,500 + $15,000 = $67,500

We also need to add the cost of goods in process at the beginning of December (i.e. the cost of Job Y1), which was $20,000.

Therefore, the total cost of goods finished during December would be $67,500 + $20,000 = $87,500.

Option B is the correct answer.

Figure 5-5 Wright Corporation Had the Following Information Available for December