Question

Spruce Inc. completed Job No. A20 during 2020. The job cost sheet listed the following: Job No. A20 Costs for 5000 units produced: Direct materials $30,000 Direct labor $45,000 Manufacturing overhead applied $20,000 Units sold 2,000 units How much is the cost of the finished goods on hand at the end of the period from this job?

Answer 1

Answer: $57,000

Step-by-step explanation:

Cost of finished goods on hand at end of period = Goods on hand * Unit Cost

Goods on hand = Units Produced - Units sold

= 5,000 - 2,000

= 3,000 units

Unit Cost = Total Cost / Units Produced

= ( Direct materials + Direct Labor + Manufacturing overhead)/ Units produced

= ( 30,000 + 45,000 + 20,000) / 5,000

= $19

Cost of finished goods on hand at end of period = 3,000 * 19

= $57,000