Nagle Inc uses job-order costing system in which any underapplied or overapplied

Question

Nagle Inc uses job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the conssed or 1 400 unts o, one or he compan s s ardard products No other obs were in process dringthe month The ob cost sheet forjob ?43G shows that the total cost During the month, the actual end of the month In October the company completed job 043G the overhead cost incurred was $212 230 and the manufacturing cost applied to job 043G was $229,600. Aso during the month, 9400 completed unts rom job 043G were sold No other products were sold. The cost of goods sold that would appear on the income statement for October is closest to O $866.250 O $546120 O $848,880 O $51380

Explanation / Answer

Unadjusted cost of goods sold = 866250/15400*9400 = 528750

Over applied overhead = 229600-212230 = 17370

Adjusted cost of goods sold = 528750-17370 = 511380

so answer is d) 511380

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