Kelita's Kar Kare Kompany had the following cost and inventory data for the month: Costs incurred for the month:
Direct labour $6,900
Indirect labour 1,500
Direct materials purchased 4,500
Factory utilities 2,200
Factory amortization 3,000
Factory supervision 1,200
Inventories:
Ending Beginning
Direct materials $1,500 $1,800
Work in process 4,500 4,050
Finished goods 6,000 5,250
Assume that the total production costs incurred for the month were $15,000. What was the cost of jobs completed?

Question

Quizplus · Accepted Answer

The cost of jobs completed can be calculated using the following formula:
Cost of jobs completed = Total production costs incurred - Ending work in process inventory + Beginning work in process inventory

Substituting the given values, we get:

Cost of jobs completed = $15,000 - $4,500 + $4,050
Cost of jobs completed = $14,550

Therefore, the best choice is A) $14,550.

Kelita's Kar Kare Kompany Had the Following Cost and Inventory