Question

Jackson Company applies overhead to products using a pre
determined rate of $12.10 per direct labor hour.

During 2019, Jackson Company began work on three jobs.
Information relating to these three jobs appears below:

                           Job #359   Job #360   Job #361
direct materials .......    $98,000    $75,000    $91,000
direct labor cost ......    $95,200    $79,900    $69,700
direct labor hours .....      5,600      4,700      4,100

By the end of 2019, job #359 and job #361 had been completed.
Job #360 was not completed by the end of 2019. Additionally,
by the end of 2019, job #361 had been sold while job #359 was
not sold. Jackson Company had total actual overhead cost of
$169,000 during 2019.

Calculate the amount of finished goods inventory reported in
Jackson Company's December 31, 2019 balance sheet.

Answer 1

Answer:
Given, Job # 359 Completed by end of 2019
Manufacturing Overhead applied to Job # 359      = Pre -determined rate x Direct Labor Hours      = $ 12.10 x 5,600 DLH	$ 67,760
Particulars	Amount
Direct material	$ 98,000
Direct labour	$ 95,200
Manufacturing Overhead applied	$ 67,760
Total Finished goods inventory	$ 260,960
Amount of finished goods inventory reported in Jackson Company's December 31, 2019 balance sheet	$ 260,960