Stutz, Inc

Multiple Choice

Stutz, Inc.designs and builds basketball gymnasiums.Each gymnasium is custom-built to individual customers' specifications.Stutz uses job-order costing to keep track of its costs.In February it worked on three jobs.Data for these jobs are as follows:
Overhead is applied to jobs at the rate of $25 per machine hour.By February 28, Job 178 is the only one unfinished.The balance of Finished Goods on February 1 is $94,000 (consisting of Job 177) .Jobs 177 and 179 are sold during February.Stutz sells its product at cost plus 40%.

What is sales revenue for February?

A) $219,500
B) $175,700
C) $131,600
D) $307,300
E) $237,300