Mateus Inc. uses a job-order costing system in which any underapplied or overapp
ID: 2378744 • Letter: M
Question
Mateus 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 September the company completed job X86V that consisted of 25,000 units of one of the company's standard products. No other jobs were in process during the month. The total manufacturing cost for job X86V according to its job cost sheet was $1,232,500. During the month, the actual manufacturing overhead cost incurred was $286,700 and the manufacturing overhead applied was $276,900. And during the month, 18,000 completed units from job X86V were sold. No other products were sold during the month.
The cost of goods sold that would appear on the income statement for September, after adjustment for any underapplied or overapplied overhead, is closest to:
Mateus 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 September the company completed job X86V that consisted of 25,000 units of one of the company's standard products. No other jobs were in process during the month. The total manufacturing cost for job X86V according to its job cost sheet was $1,232,500. During the month, the actual manufacturing overhead cost incurred was $286,700 and the manufacturing overhead applied was $276,900. And during the month, 18,000 completed units from job X86V were sold. No other products were sold during the month.
Explanation / Answer
$897,200