Huse Inc., uses a job order costing system in which any underapplied or overapplied overhead is closed to the cost of goods sold at the end of the month. In June, the company completed job J38C which consisted of 21,000 units of one of the company's standard products. No other jobs were in process during the month. The Job cost sheet for job J38C shows the following costs:
|Direct labor cost||147,000|
|Manufacturing overhead cost applied||226,800|
During the month, the actual manufacturing overhead cost incurred was $229,110 and 16,000 completed units from job J38C were sold. No other products were sold during the month.
Determine the unadjusted cost of goods sold for June.
Cost of Goods Sold (COGS):
The price of an item in a producing firm's sales expense includes some cost categories since it encompasses all of the product expenses incurred by the industry on the units that are physically sold during the period.
Answer and Explanation: 1
Answer and Explanation:
Calculation of unadjusted cost of goods sold for June:
|Add: Direct material||$81...|
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fromChapter 5 / Lesson 7
Learn about the cost goods sold (COGS) in accounting. Understand how t-accounts work, and how job flow cost accounting can be used to track cost of goods sold.