Zander 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 July the company completed job F21x that
consisted of 21.450 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job F21x shows the following costs:
Beginning balance
Direct materials
Direct labor cost
Manufacturing overhead cost applied
a. $70, 785
b. $699,270
c. $265,980
d. $403,260
During the month, the actual manufacturing overhead cost incurred was $398,970 and 14,300 completed units from Job F2IX were sold. No other products were sold during the month. The unadjusted
cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overopplied overhead) for July is closest to:
Multiple Choice
a. $1,368,510
b. $959.530
c. $1,439,295
d. $956,730