(CMA) Lucy Sportswear manufactures a specialty line of T-shirts using a job order cost system. During March, the following costs were incurred in completing Job ICU2: direct materials $13,700, direct labor $4,800, administrative $1,400, and selling $5,600. Factory overhead was allocated at the rate of $25 per machine hour, and Job ICU2 required 800 machine hours. If Job ICU2 resulted in 7,000 good shirts, the cost of goods sold per unit would be
A) $6.50
B) $6.30
C) $5.70
D) $5.50
Correct Answer:
Verified
Q116: Job costing is used in manufacturing for
Q121: All of the following products or services
Q122: Abnormal spoilage is accounted for by:
A) Separating
Q123: Job costing is used to:
A) Value inventory
Q124: Underapplied and overapplied overhead arise because:
A) The
Q125: Direct materials in job costing:
A) Can be
Q126: Jorgensen Furniture uses job costing and allocates
Q130: Indirect materials:
A) Flow into the overhead account
B)
Q130: Under job costing, the cost of inventory
Q133: When underapplied or overapplied overhead is large
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