The following information is available for completed Job No. 402: Direct materials $170000
Direct labor $230000
Manufacturing overhead applied $160000
Units produced 8000 units
Units sold 6000 units.

The cost of the finished goods on hand from this job is:

a. $420000.
b. $140000.
c. $560000.
d. $100000.

b. $140000.

Explanation:

We know that

cost of finished goods in stock= (total production cost ÷ number of units produced)×number of units unsold

= [(170000+230000+160000)/8000]*(8000-6000)

= $140000

Option b) is the correct answer

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.