Chapter 4, Problem 4.20MCQ

Under Stanford Corporation’s job costing system, manufacturing overhead is applied to work in process using a predetermined annual overhead rate. During November Year 1, Stanford’s transactions included the following:

Direct materials issued to production	$180,000
Indirect materials issued to production	16,000
Manufacturing overhead incurred	250,000
Manufacturing overhead applied	226,000
Direct manufacturing labor costs	214,000

Stanford had neither beginning nor ending work-in-process inventory. What was the cost of jobs completed and transferred to finished goods in November 20X1?

1. 1. $604,000
2. 2. $644,000
3. 3. $620,000
4. 4. $660,000