Question
A company that uses job order costing reports the following information for March. Overhead is applied at the rate of 60% of direct materials cost.
A company that uses job order costing reports the following information for March. Overhead is applied at the rate of 60% of direct materials cost. The company has no beginning Work in Process or Finished Goods inventories at March 1. Jobs 1 and 3 are not finished by the end of March, and Job 2 is finished but not sold by the end of March.
| Job 1 | Job 2 | Job 3 |
|---|---|---|
| Direct materials used | $ 10,000 | $ 14,000 |
| Direct labor used | $ 18,000 | $ 8,000 |
Determine the total dollar amount of Finished Goods Inventory at the end of March.
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Government and Not-for-Profit Accounting Concepts and Practices
Authors: Michael H. Granof, Saleha B. Khumawala, Thad D. Calabrese, Daniel L. Smith
8th edition
1119495814, 1119495857, 1119495819, 9781119495819 , 978-1119495857
