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Dreckman Inc

Question 58

Multiple Choice

Dreckman 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 August the company completed job M27K that consisted of 17, 000 units of one of the company's standard products.No other jobs were in process during the month.The total manufacturing cost for job M27K according to its job cost sheet was $1, 118, 600.During the month, the actual manufacturing overhead cost incurred was $265, 880 and the manufacturing overhead applied was $272, 000.And during the month, 1, 000 completed units from job M27K 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 August is closest to:


A) $65, 440
B) $1, 043, 800
C) $1, 118, 600
D) $65, 800

Correct Answer:

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