Question

Fannin Company completed Job No. A20 during 2017. The job cost sheet listed the following: Direct materials $10,300 Direct labor $5,600 Manufacturing overhead applied Units produced $4,600 Units sold 1,000 units 400 units How much is the cost of the finished goods on hand for this job? $30,750 $12,300 $20,500 $8,200

Answer 1

Answer: $12,300

Calculation:

Step 1: Ending Inventory

Ending Inventory = Units Produced - Units Sold

Ending Inventory = 1,000 Units - 400 Units = 600 Units

Step 2: Unit Product cost

Particulars	$
Direct Materials	10,300
Direct Labor	5,600
Manufacturing overhead applied	4,600
Total Product cost	20,500

Unit Product cost = $20,500 / 1,000 Units = $20.50 per unit

Step 3: Cost of the finished goods on hand

Cost of the finished goods on hand = 600 Units * $20.50 per unit = $12,300

All the best...