For the solution of

Why is the answer for finished goods equal 0? Shouldn't that be $60,000 from Job 612 which is completed?

Fulton Construction

Fulton Construction company uses a job order costing system and applies overhead using normal

costing system based on direct labor dollars.

On December 1, it had two jobs in finished goods

inventory and two jobs in its work-in-process inventory, as follows:

Job No.

Costs as of 12/1

Status

612

60,000

Completed

613

85,000

Completed

614

45,000

In-process

615

18,000

In-process

Selected data for the month of December follow:

1.

Direct materials issued: Job 614: $13,000; Job 615: $8,000; Job 616: $12,000

2.

Direct labor costs: Job 614: $20,000; Job 615: $42,000; Job 616: $5,000

3.

Applied overhead: Job 614: $14,000; Job 615: $29,400; Job 616: $3,500

4.

Actual overhead costs incurred: $50,000

5.

Completed Job 614.

Did not complete Jobs 615 and 616.

6.

Sold Jobs 613 and 614.

Questions: