When Job 711 Was Completed, Direct Materials Totaled $4,000; Direct

question 139

Multiple Choice

When job 711 was completed, direct materials totaled $4,000; direct labor, $5,600; and factory overhead, $2,400 respectively. Units produced totaled 1,000. Unit costs are:

• A) $12,000
• B) $1,200
• C) $120
• D) $12

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Definitions:

Nonmanufacturing Costs

Expenses not directly related to the production of goods, such as selling, general, and administrative expenses.

Job-Order Costing

An accounting method that tracks costs individually for each job, suitable for manufacturing operations that produce goods based on specific customer orders.

Unit Product Cost

The total cost associated with producing one unit of product, including direct materials, direct labor, and allocated overhead.

Indirect Labor

Costs associated with employees who are not directly involved in the production of goods or services but support those who are.