Ceniceros Inc. uses a job-order costing system in which any underapplied or overapplied overhead for the period is closed out to cost of goods sold. In October, the company completed job Z53N that consisted of 20,000 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job Z53N shows that the total cost for the job was $1,232,000. During the month, the actual manufacturing overhead cost incurred was $346,800 and the manufacturing overhead cost applied to job Z53N was $322,000. And during the month, 15,000 completed units from job Z53N were sold. No other products were sold.
Required:
Determine the cost of goods sold that would appear on the income statement for October. Show your work!

Question

Quizplus · Accepted Answer

The Answer of Ceniceros Inc. uses a job-order costing system in which any underapplied or overapplied overhead for the period is closed out to cost of goods sold. In October, the company completed job Z53N that consisted of 20,000 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job Z53N shows that the total cost for the job was $1,232,000. During the month, the actual manufacturing overhead cost incurred was $346,800 and the manufacturing overhead cost applied to job Z53N was $322,000. And during the month, 15,000 completed units from job Z53N were sold. No other products were sold.
Required:
Determine the cost of goods sold that would appear on the income statement for October. Show your work!