Rohweder Inc

question 52

Essay

Rohweder 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 December the company completed job O36K that consisted of 18,000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job O36K shows that the job's total cost was $860,400.During the month,the actual manufacturing overhead cost incurred was $214,020 and the manufacturing overhead cost applied was $223,200.And during the month,15,000 completed units from job O36K 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 December.Show your work!

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Definitions:

Competitive

Relates to a market situation where multiple sellers are trying to appeal to the same customers, often leading to innovation and better prices.

Labor Market

An economic marketplace that matches potential employers with employees based on their skills, job requirements, and wage expectations.

Wage

The amount of money that is paid to an employee by an employer, typically in exchange for the employee's labor, calculated on an hourly, daily, or piecework basis.

Value of Marginal Product

The additional revenue generated by employing one more unit of a factor of production, holding all other factors constant.