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 13,200 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 $52,800 Direct materials $448,800 Direct labor cost $191,400 Manufacturing overhead cost applied $257,400 During the month, the actual manufacturing overhead cost incurred was $254,760 and 8,800 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: $950,400 $897,600 $630,800 $633,600

Answer 1

COGS= $633,600

Step-by-step explanation:

Giving the following information:

In July the company completed job F21X that consisted of 13,200 units of one of the company's standard products.

Beginning balance $52,800

Direct materials $448,800

Direct labor cost $191,400

Manufacturing overhead cost applied $257,400

8,800 completed units from job F21X were sold.

First, we need to calculate the total cost:

Total cost= beginning balance + direct material + direct labor + MOH applied

Total cost= 950,400

Unitary cost= 950400/13200= $72 per unit

COGS= 72*8800= $633,600