| Save & Exit || Submit Question 8 (of 12)> Time remaining: 0:42:13 8. Abramov I

Question

| Save & Exit || Submit Question 8 (of 12)> Time remaining: 0:42:13 8. Abramov 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 May the company completed job N29W that consisted of 23,400 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job N29W shows that the job's total cost was $889,200. During the month, the actual manufacturing overhead cost incurred was $230,750 and the manufacturing overhead cost applied was $217,750. Also during the month, 6,500 completed units from job N29W were sold. No other products were sold during the month. The unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for May is closest to: O $866700 O $889.200 O $251,920 O $247000

Explanation / Answer

N29W Units 23400 Total Cost 889200 Actual Manufacturing Cost 230750 Applied Manufcturing Cost 217750 Under Applied Overheads 13000 N29W Units(A) 23400 Total Cost(B) 889200 Per Unit Cost(B/A) 38.00 Units Sold During the month 6500 Cost of Goods Sold (Before Adjustment) 247000 (6500*38) Answer is 247000

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