Smothers Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.In June the company completed job Y52D 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 Y52D shows the following costs:
During the month,the actual manufacturing overhead cost incurred was $274,850 and 4,000 completed units from job Y52D were sold.No other products were sold. The cost of goods sold that would appear on the income statement for June is closest to:
A) $1,404,160
B) $242,850
C) $245,150
D) $1,403,000
Correct Answer:
Verified
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