Question

Question 9 5 pts The following information is available for completed Job No. 503: Direct materials, $260,000; direct labor, $560,000; manufacturing overhead applied, $280,000; units produced, 100,000 units; units sold, 80,000 units. The cost of the finished goods on hand from this job is O $1,100,000 $220,000 $840,000 $880,000 Question 10 5 pts

Answer 1

Ans.

Calculation of cost of finished goods in hand Discription Total cost($) Per unit cost($) Direct material 2,60,000 2.6 Direct Labour 5,60,000 5.6 Manufacturing overheads 2,80,000 2.8 Total job cost for 100,000 units 11,00,000 11

Units of Finished goods in hand= Total units produced- Unit solds

                                                   =100,000 units - 80,0000 units

                                                    = 20,000 units

So, the cost finished goods in hand = No of units in hnad * Per unit cost

                                                        = 20,000 units * $11

                                                          = $ 220,000 ( Option "B")