Zander Inc. uses a job-order costing system in which any underapplied or overapp
ID: 2565371 • Letter: Z
Question
Zander Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month. In July the company completed job F21X that consisted of 9,750 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job F21X shows the following costs Direct materials Direct labor cost Manufacturing overhead cost applied $42.900 $339,300 153,075 $194,025 During the month, the actual manufacturing overhead cost incurred was $192,075 and 6,500 completed units from job F21X were sold. No other products were sold during the month. The unadjusted cost of goods sold (n other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for July is closest to: O $729.300 O $686,400 O $486.20o O $483.400 Multiple Choice TB MC Qu. 04-67 Zander Inc.Explanation / Answer
1) $486200
Total units =9750
Total job cost = $729300 ($42900+$339300+$153075+$194025)
Per unit cost = $729300 / 9750 units = $74.8
Sold units = 6500
Total cost = $74.8*6500 units = $486200
2) $127900
beginning finished goods inventory: $ 28000
Add:Cost of goods manufactured: $145000
Goods Available for sale: $173000
Less:Ending finished goods inventory: $44000
Cost of goods sold: $129000
Less: Overapplied overhead: $1100
Adjusted cost of goods sold = $127900
3) $526400
Total period cost = variable selling and administrative cost + fixed manufacturing overhead + fixed selling and administrative cost
= ($10*9900 units)+$298700+$128700
=$526400
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