Question

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Explanation:

Identify given values and target

We are given the following information:

• Total units produced in Job N29W: \(15,000\) units
• Total job cost for Job N29W: \(\$732,000\)
• Units sold during May: \(6,000\) units
• No other jobs were in beginning or ending inventories.
• Target: Calculate the ending finished goods inventory at the end of May.

Calculate unit product cost

Using the Unit Product Cost Calculation knowledge point:

$$ \text{Unit Product Cost} = \frac{\text{Total Job Cost}}{\text{Total Units Produced}} $$

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

Determine ending inventory units

Using the Job Costing System knowledge point:

$$ \text{Ending Inventory Units} = \text{Total Units Produced} - \text{Units Sold} $$

$$ \text{Ending Inventory Units} = 15,000 - 6,000 = 9,000\text{ units} $$

Calculate ending finished goods inventory value

Multiply the remaining units in inventory by the unit product cost:

$$ \text{Ending Finished Goods Inventory} = 9,000\text{ units} \times \$48.80\text{ per unit} $$

$$ \text{Ending Finished Goods Inventory} = \$439,200 $$

Answer:

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