Under Eagle Co.'s job costing system, manufacturing overhead is applied to Work-in-Process using a predetermined annual overhead rate. During February, Eagle's transactions included the following:

Direct materials issued to production $ 90,000
Indirect materials issued to production 8,000
Manufacturing overhead incurred 125,000
Manufacturing overhead applied 113,000
Direct labor costs 107,000
Eagle had neither beginning nor ending inventory in Work-in-Process Inventory. What was the cost of jobs completed in February? (CPA ad

Answer: $310,000

Explanation:

Based on the information given in the question, the cost of jobs that are completed in February will be:

Direct materials issued to production = $90,000

Add: Direct labor cost = $107,000

Add: Manufacturing overhead applied = $113,000

This will be:

= $90,000 + $107,000 + $113,000

= $310,000

Therefore, the cost of jobs completed in February is $310,000.

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A.
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B.
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C.
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D.
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B.
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D.
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