Uxmaiz Corporation had only one job in process during May—Job X32Z—and had no fi

Question

Uxmaiz Corporation had only one job in process during May—Job X32Z—and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below

   

1. In May, overhead was overapplied by $300. The company adjusts its cost of goods sold every month for the amount of the overhead that was underapplied or overapplied.

Uxmaiz Corporation had only one job in process during May—Job X32Z—and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below

Explanation / Answer

Cost of goods sold per unit = Total cost / units completed

= (5,000 + 8,000 + 2,000 + 4,000) / 100 = 190 per unit

Statment of adjusted cost of goods sold

Particulars Amount Cost of goods sold ( 40 units X 190) 7,600 Less : overhead over applied 300 Adjusted Cost of goods sold 7,300

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