Techuxia Corporation worked on four jobs during October: Job A256, Job A257, Job
ID: 2565954 • Letter: T
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 overapplied by $1,320. 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?
2. What is the total value of the finished goods inventory at the end of October?
3. What is the total value of the work in process inventory at the end of October?
Job A256 Job A257 Job A258 Job A260 Beginning balance $ 1,030 $ 540 $ 0 $ 0 Charged to the jobs during October: Direct materials $ 2,780 $ 3,900 $ 1,440 $ 3,700 Direct labor $ 1,100 $ 830 $ 650 $ 440 Manufacturing overhead applied $ 5,698 $ 1,770 $ 2,706 $ 420 Units completed 208 0 109 0 Units in process at the end of October 0 311 0 250 Units sold during October 145 0 56 0Explanation / Answer
1. Cost of goods sold for October is as calculated below:
2. Total value of the finished goods inventory at the end of October is:
3. Total value of the work in process inventory at the end of October is:
Direct Method Cost of goods sold Job 256 Job 258 Total Opening Balance 1,030 0 1,030 Direct Material 2,780 1,440 4,220 Direct Labour 1,100 650 1,750 manufacturing overhead 5,698 2,706 8,404 Total 10,608 4796 15,404 Units completed 208 109 317 Unit product cost 51 44 95 Units sold 145 56 201 Unadjusted cost of goods sold 7395 2464 9,859 Deduct Overapplied Overhead 1,320 Cost of goods sold 8,539Related Questions
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