Question

abramov incorporated uses a job-order costing system and its total manufacturing overhead applied always equals its total manufacturing overhead. in may the company completed job n29w that consisted of 15,000 units of one of the companys standard products. no other jobs were in beginning finished goods inventory or work in process during the month. the job cost sheet for job n29w shows that the jobs total cost was \\$732,000. during the month, 6,000 completed units from job n29w were sold. the finished goods inventory at the end of may is closest to:

multiple choice

\\$292,800

\\$439,200

\\$732,000

\\$392,800

Explanation:

Calculate unit product cost

Using the Unit Product Cost Calculation knowledge point

$$ \text{Unit Product Cost} = \frac{\text{Total Job Cost}}{\text{Total Units Produced}} = \frac{\$732,000}{15,000\text{ units}} = \$48.80\text{ per unit} $$

Determine ending inventory units

Using the Finished Goods Inventory Valuation knowledge point

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$$

Calculate ending finished goods inventory value

Using the Finished Goods Inventory Valuation knowledge point

$$
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$$

Answer:

• (A) $292,800
• (B) $439,200 (Correct answer)
• (C) $732,000
• (D) $392,800