Question

Zander Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month. In July the company completed job F21X that consisted of 29,850 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job F21X shows the following costs: Beginning balance $80,595 Direct materials $937,290 Direct labor cost $316,410 Manufacturing overhead cost applied $543,270 During the month, the actual manufacturing overhead cost incurred was $537,300 and 19,900 completed units from job F21X were sold. No other products were sold during the month. The unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for July is closest to:_______.

Answer 1

Answer:

The answer is "$ 1,251,710".

Explanation:

Formula:$\text{Overall cost for Job F21X completed during the month = } \\\text{Beginning balance + Direct materials + Direct labor + Manufacturing overhead applied }$

$= \ 80,595 + \ 937,290 +\ 316,410 + \ 543,270 \\\\= \ 1,877,565$

Complete unit in Job = 29,850 units

Per unit cost units

                      $= \ 62.9$  per unit

Sold units=  19,900 units

Sold goods cost $= 19,900 \times \ 62.9$

                           $= \ 1,251,710$