Question

Techuxia Corporation worked on four jobs during October: Job A256, Job A257, Job A258, and Job A260. At the end of October, the job cost sheets for these jobs contained the following data: Job A256 $1,010 Job Job A257 A258 $ 670 $ 0 Job A260 $ 0 Beginning balance Charged to the jobs during October: Direct materials Direct labor Manufacturing overhead applied Units completed Units in process at the end of October Units sold during October $ 2,790 $3,900 $1,410 $3,670 $1,270 $ 930 $ 670 $ 370 $1,618 $1,750 $1,280 $ 490 2090 112 0 0 302 0 257 145 0 50 0 Jobs A256 and A258 were completed during October. The other two jobs had not yet been completed at the end of October. There was no finished goods inventory on October 1. In October, overhead was overapplied by $1,350. The company adjusts its cost of goods sold every month for the amount of the underapplied or overapplied overhead. Required: 1. Using the direct method, what is the cost of goods sold for October? Cost of goods sold

Answer 1

Job Cost sheet

	Job A256	Job A257	Job A258	Job A259
Beginning balance	1010	670	0	0
Direct material	2790	3900	1410	3670
Direct labor	1270	930	670	370
Overhead applied	1618	1750	1280	490
Total	6688	7250	3360	4530
Unit	209		112
Unit cost	32		30

a) Cost of goods sold = (145*32+50*30-1350) = 4790

b) Finished goods = 64*32+62*30 = 3908

c) Work in process = 7250+4530 = 11780