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frozen [14]
3 years ago
7

Consider the following job costing system, where manufacturing overhead is applied to Work-in-Process using a predetermined annu

al overhead rate. During February, the company's transactions included the following: Direct materials issued to production $100,000 Indirect materials issued to production $18,000 Manufacturing overhead incurred $135,000 Manufacturing overhead applied $123,000 Direct labor costs $117,000 The company had neither beginning nor ending inventory in Work-in-Process Inventory. What was the cost of jobs completed in February
Business
1 answer:
anyanavicka [17]3 years ago
7 0

Answer:

The correct response is "$340,000".

Explanation:

The given values are:

Direct issued materials,

= $100,000

Direct labor costs,

= $117,000

Applied manufacturing overhead,

= $123,000

Indirect issued materials,

= $18,000

Now,

In February, the cost of completed jobs will be:

= Direct \ issued \ materials +Direct \ labor \ costs+Applied \ manufacturing \  overhead

On substituting the given values, we get

= 100,000+117,000+123,000

= 340,000 ($)

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