The following information is available for completed Job No. 402: Direct materials $120000; direct labor $180000; manufacturing overhead applied $90000; units produced 5000 units; units sold 4000 units. The cost of the finished goods on hand from this job is
A) $60000.
B) $390000.
C) $78000.
D) $312000.

Question

Quizplus · Accepted Answer

To find the cost of finished goods on hand, we need to calculate the total cost of the completed units (5000 units) and then subtract the cost of goods sold (4000 units).
Total cost of completed units:
Direct materials + Direct labor + Manufacturing overhead applied
= $120000 + $180000 + $90000
= $390000
Cost of goods sold:
Total cost of completed units * Units sold / Units produced
= $390000 * 4000 / 5000
= $312000
Cost of finished goods on hand:
Total cost of completed units - Cost of goods sold
= $390000 - $312000
= $78000

Therefore, the cost of finished goods on hand from this job is $78000, which is option C.

The Following Information Is Available for Completed Job No