Ceniceros Inc

question 24

Essay

Ceniceros Inc. uses a job-order costing system in which any underapplied or overapplied overhead for the period is closed out to cost of goods sold. In October, the company completed job Z53N that consisted of 20,000 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job Z53N shows that the total cost for the job was $1,232,000. During the month, the actual manufacturing overhead cost incurred was $346,800 and the manufacturing overhead cost applied to job Z53N was $322,000. And during the month, 15,000 completed units from job Z53N were sold. No other products were sold.
Required:
Determine the cost of goods sold that would appear on the income statement for October. Show your work!

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any learning needed.

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Innate Response

Natural or instinctive reactions that organisms are born with, not learned through experience.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any prior learning or conditioning.