Rasbery Inc

question 50

Essay

Rasbery 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 January the company completed job D97T that consisted of 27,000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job D97T shows the following costs: During the month,the actual manufacturing overhead cost incurred was $289,170 and 14,000 completed units from job D97T were sold.No other products were sold.
Required:
Determine the cost of goods sold that would appear on the income statement for January.Show your work!

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Definitions:

Manufacturing Cost

The total cost involved in making a product, including direct materials, direct labor, and manufacturing overhead.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance of a manufacturing facility.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or job orders, based on estimated costs and activity levels.

Manufacturing Overhead

All manufacturing costs that are not directly attributable to a specific product, including indirect labor, maintenance, and utilities.