Use the Information Below to Answer the Following Question(s)

question 105

Multiple Choice

Use the information below to answer the following question(s) .World Engines Ltd.manufactures custom engines for use in the lawn and garden equipment industry.The company allocates manufacturing overhead based on machine hours.Selected data for costs incurred for Job 787 are as follows:

-What is the total manufacturing cost of Job 787 using normal costing?

• A)$17,100
• B)$14,960
• C)$12,800
• D)$15,500
• E)$14,300

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Definitions:

Finished Goods Inventory

Finished and market-ready products still awaiting purchase.

Cost of Goods Available for Sale

The total cost of a company's inventory at the beginning of the period plus the cost of any goods produced or purchased during the period.

Direct Materials Cost

The cost of raw materials that can be directly traced to the production of goods.

Cost of Goods Manufactured

The total cost of producing goods during a specific period, including raw materials, labor, and overhead expenses.