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Jobs 1, 2, 3 and 5 were completed at $1,810, $2,530, $1,420 and $3,470, and Jobs 2 and 5 were sold. What cost remains in Finished Goods?
A$6,000
B$3,230
C$4,940
D$5,280
Answer & Solution
Correct answer: B. $3,230
1. Four jobs reached Finished Goods, at a combined cost of $9,230.
2. Jobs 2 and 5 were sold, so their costs of $2,530 and $3,470 left the account.
3. Jobs 1 and 3 are completed but unsold, so they remain in Finished Goods.
4. Their combined cost is $1,810 plus $1,420, which is $3,230.
5. $6,000 is the cost of the jobs that were sold, so it is the amount that left rather than the amount left behind.
_Source: Jonick, Principles of Managerial Accounting (UNG Press, CC BY-SA 4.0), section 2.2 Comprehensive Example of Job Order Costing Transactions for a Manufacturing Company_
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