Juanita Corporation uses a job-order costing system and applies overhead on the basis of direct labor cost. At the end of October, Juanita had one job still in process. The job cost sheet for this job contained the following information: Direct materials $ 480 Direct labor $ 150 Manufacturing overhead applied $ 600 An additional $100 of labor was needed in November to complete this job. For this job, how much should Juanita have transferred to finished goods inventory in November when it was completed?

Question

Francis Moyer

Business

26 February, 05:39

Juanita Corporation uses a job-order costing system and applies overhead on the basis of direct labor cost. At the end of October, Juanita had one job still in process. The job cost sheet for this job contained the following information: Direct materials $ 480 Direct labor $ 150 Manufacturing overhead applied $ 600 An additional $100 of labor was needed in November to complete this job. For this job, how much should Juanita have transferred to finished goods inventory in November when it was completed?

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Answers (1)

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Miles · Answer 1

Total Cost of the Job $

Direct materials 480

Direct labour 150

Additional labour 100

Applied overhead 600

Total cost 1,330

The total amount to be transferred to finished goods inventory in November is $1,330.

Explanation:

The total cost of the job is the total of direct material, direct labour, additional labour and manufacturing overhead applied. The additional labour cost is considered because it is required to complete the job.