Eggins Inc

question 10

Essay

Eggins 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 Q30I that consisted of 23,000 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job Q30I shows that the job's total cost was $1,292,600. During the month, the actual manufacturing overhead cost incurred was $352,820 and the manufacturing overhead cost applied was $379,500. And during the month, 17,000 completed units from job Q30I were sold. No other products were sold during the month.
Required:
Determine the unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for May. Show your work!

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Definitions:

Magnesium Bromide

A chemical compound consisting of magnesium and bromine, often used in organic synthesis as a reagent or catalyst.

Organic Product

A substance containing carbon atoms, produced as the result of an organic chemical reaction.

Major Structure

The most stable or predominant structure among several possible structures of a molecule.

Synthetic Steps

The individual chemical reactions performed in sequence to construct a complex molecule from simpler starting materials.