Question
The Ballard Company manufactures bookshelves and other office equipment for local businesses. Since the company uses a Job Order Costing system, and overhead application is
The Ballard Company manufactures bookshelves and other office equipment for local businesses. Since the company uses a Job Order Costing system, and overhead application is done based on direct labor costs, managers used estimates to compute a predetermined overhead application rate of $2 per direct labor dollar.
During the month of February, the following jobs were started and incurred the following costs during the period. Assume no other jobs were in process at the start of the month.
Cost | Job 1-23 | Job 1-24 | Job 1-25 |
Direct Materials Used | $10,752 | $8,466 | $10,000 |
Direct Labor Costs | $4,860 | $5,645 | $5,781 |
Actual Overhead of $28,096 was incurred during the month. If only Job 1-23 and Job 1-25 were completed during the month and only Job 1-25 was sold during the month, what is Cost of Goods Sold for the period after adjusting for any over- or under-applied overhead?
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