On March 9, 2016, 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

Quizplus · Accepted Answer

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 x $30 = $12,000. Total cost = $6,000 + $8,000 + $12,000 = $26,000.

On March 9, 2016, Job XX4 Was Completed