On April 9 of the current year, Job XX4 was completed. The job cost sheet showed a total of $4,000 in direct materials and $6,000 in direct labor at a rate of $20 per direct labor hour. Plantwide overhead is applied at $30 per direct labor hour. The debit to Finished Goods Inventory to record the completion of Job XX4 is
A) $19,000.
B) $9,000.
C) $4,000.
D) $13,000.

Respuesta :

Answer:

amount to be debited to finish good inventory = $19000

correct option is A) $19,000

Explanation:

given data

direct materials = $4,000

direct labor = $6,000

direct labor hour = $20

over head applied = $30 per direct labor hour

to find out

debit to Finished Goods Inventory

solution

first we get here overhead that is

overhead = [tex]\frac{direct\ labor}{labor\ rate}[/tex] × overhead     .........1

overhead = [tex]\frac{6000}{20}[/tex] × 30

overhead = $9000

so

amount to be debited to finish good inventory is

amount to be debited to finish good inventory = direct materials + direct labor + over head    ................2

amount to be debited to finish good inventory = $4,000 + $6,000 +$9,000

amount to be debited to finish good inventory = $19000

correct option is A) $19,000