Techuxia Corporation worked on four jobs during October: Job A256, Job A257, Job

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:

      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 underapplied by $1,260. The company adjusts its cost of goods sold every month for the amount of the underapplied or overapplied overhead.

Using the direct method, what is the cost of goods sold for October?

What is the total value of the finished goods inventory at the end of October?

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:

Explanation / Answer

1)There are 2 jobs completed during the year:

A256 :Total cost for manufacturng 211 units = 2720+1210+3600 = 8440 or 8440/211 = $ 40 per unit

out of these 143 units are sold :cost of good ssold = 143*40 = 5720

A258 :Total cost = 5060 or 5060/110 = $ 46 per unit .out of these ,66 units are sold (46*66) = 3036

Cost of good ssold = 5720+3036 + 1260 underapplied = 10016

2)Finished goods Inventory

A256 : (211-143 Sold) =68 units * 40 = 2720

A258 (110-66) = 44 units *46 = 2024

Total = 4744

3)Work iN process =job A257+JOBA260

       = (4050+870+1740) + (3800+360+530)

        = 6660 + 4690

         = 11350

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