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Job order costing and cost of goods sold Widget Co. uses a job order costing system that allocates manufacturing overhead based on machine hours. At
Job order costing and cost of goods sold
Widget Co. uses a job order costing system that allocates manufacturing overhead based on machine hours. At the beginning of the year, they estimated that total manufacturing overhead would be $1,220,000 and total machine hours would be 100,000. In October, the company had no beginning finished goods inventory and completed one job of 20,000 units. The job cost sheet reports that the total manufacturing costs for the job were $710,000 and the job used 200 machine hours. The actual manufacturing overhead costs for October were $2,010. During the month, Widget Co. sold 10,000 of the units it made. Calculate the COGS for Widget for the month of October Step by Step Solution
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