The Following Information Is Available for Completed Job No

question 5

Multiple Choice

The following information is available for completed Job No.402: Direct materials, $80,000; direct labour, $120,000; manufacturing overhead applied, $60,000; units produced, 5,000 units; units sold, 4,000 units.The cost of the finished goods on hand from this job is

• A)$52,000.
• B)$260,000.
• C)$40,000.
• D)$208,000.

Calculate the total job cost incorporating direct materials, direct labor, and applied overhead.

Determine the selling price of jobs based on manufacturing cost and markup.

Analyze the impact of actual overhead costs versus applied overhead on job costing.

Understand the allocation base used for predetermined overhead rates in different departments.

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Definitions:

Pro Forma Balance Sheets

Financial statements prepared in advance of a planned transaction, showing the expected financial position of a company.

Pro Forma Statements

are financial reports that companies use to project future financial performance based on past and current financial conditions.

Asset Structure

The composition of a company's fixed assets and current assets, which shows how the company's resources are invested in different types of assets.

Financial Plan

A detailed strategy outlining an individual's or organization's financial goals and the means and timeline for achieving them.