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During 2020 Sheridan Manufacturing expected Job 25 to cost $75400 of overhead, $130000 of material, and...

During 2020 Sheridan Manufacturing expected Job 25 to cost $75400 of overhead, $130000 of material, and $25000 in labour. Caruba applied overhead based on direct labour cost. Actual production required an overhead cost of $80000, $139200 in materials used; and $20000 in labour. All of the goods were completed. What amount was transferred to Finished Goods?
$239200


$230400


$219520


$210320

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Expert Solution

Answer: $219520

Applied overhead rate = Expected overhead / Expected labor cost

                                     = $75,400 / $25,000

                                     = $3.016

Amount of finished goods = Material used + Actual labor cost + Applied overhead

                                            = 139200 + 20000 + (20,000 × 3.016)

                                            = 159,200 + 60,320

                                            = 219,520

ekkarill92 answered 1 year ago
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