Trust Construction builds custom houses for individual buyers. On April 1, it had one job, started with a beginning Work-in-Process of $70,000. During April the job was finished and sold. Direct labor for the job in April was $90,000 and direct materials used were $66,000. Overhead is computed at a rate of 55% of direct labor. There is a markup of 40% on all sales. What was the selling price of the house?

Based on the information provided within the question we can say that the selling price of the house was that of $385,700 . This can be calculated by adding up all the prices provided plus the direct labor and markup like so.

Direct Labor: $90,000 * 0.55 = $49,500

Markup: 40% / 100 = 0.40 (percent to decimal) + 1 (to make it as an additional value) = 1.40

Price Before Markup: $70,000 + $90,000 + $66,000 + $49,500 = $275,500

Adding Markup: $275,500 * 1.40 = $385,700

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