Eggins 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 May, the company completed job Q30I that consisted of 23,000 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job Q30I shows that the job's total cost was $1,292,600. During the month, the actual manufacturing overhead cost incurred was $352,820 and the manufacturing overhead cost applied was $379,500. And during the month, 17,000 completed units from job Q30I were sold. No other products were sold during the month.
Required:
Determine the unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for May. Show your work!

Question

Quizplus · Accepted Answer

The Answer of Eggins 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 May, the company completed job Q30I that consisted of 23,000 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job Q30I shows that the job's total cost was $1,292,600. During the month, the actual manufacturing overhead cost incurred was $352,820 and the manufacturing overhead cost applied was $379,500. And during the month, 17,000 completed units from job Q30I were sold. No other products were sold during the month.
Required:
Determine the unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for May. Show your work!