Question

Question 1 Not yet answered Marked out of 1.00 P Flag question Thing Co. uses a job order costing system. At the beginning of July, the company had the following job in progress Job 70 $16064 During July, Thing Co. incurred the following job related costs Direct Materials $3451 13686 8274 Direct Labour S1460 15814 7694 Job 70 Job 80 Job 90 Manufacturing overhead is applied at a rate of S3.83 per $1 of direct labour cost. Jobs 70 and 90 were moved to finished goods during the month, but neither was sold by the end of the month. Job 80 is still in progress What would the debit to Finished Goods Inventory be for the month of July? Select one a. $55939 b. $36943 c. $72003 d. $116634

Answer 1

Answer: Option-(c): $72,003 Reason: Job-70 Job-90 $16,064 $0 Beginning balance Add: Direct materials Direct labors Mfg. overhead applied Total mfg. costs $3,451 $1,460 $5,592 $26,567$45,436 $8,274 $7,694 $29,468 [For Jab 70, $1,460 x $3.83 = $5,592; For Job 90-$7,694 x $3.83 = $29,468] Total cost debited to Finished Goods Inventory $72,003 [$26,567+ $45,436 (Cost of Job-70+Job-90)] NOTE: Job-80 is still in progress and so its cost shall not be considered in cost of finished goods inventory calculation.