Techuxia Corporation worked on four jobs during October: Job A256, Job A257, Job A258, and Job A260. At the end of October, the job cost sheets for these jobs contained the following data: Job A256 Job A257 Job A258 Job A260 Beginning balance $ 1,200 $ 500 $ 0 $ 0 Charged to the jobs during October: Direct materials $ 2,600 $ 3,500 $ 1,400 $ 3,500 Direct labor $ 800 $ 1,000 $ 600 $ 400 Manufacturing overhead applied $ 1,200 $ 1,500 $ 900 $ 600 Units completed 100 0 200 0 Units in process at the end of October 0 400 0 500 Units sold during October 80 0 40 0 Jobs A256 and A258 were completed during October. The other two jobs had not yet been completed at the end of October. There was no finished goods inventory on October 1. In October, overhead was overapplied by $800. The company adjusts its cost of goods sold every month for the amount of the underapplied or overapplied overhead. Required: 1. Using the direct method, what is the cost of goods sold for October?

1. Job A256 20

Job A258 160

2.$3,760

3.$10,400

Explanation:

Calculation of cost per unit Job A256 =

Beginning balance 1200

Charged to the jobs during October:

Direct material 3600

Direct labor 800

Manufacturing overhead applied 1200

Total 6800

6800/Units completed 100

=68

Calculation of Cost per unit Job A258

Beginning balance $0

Charged to the jobs during October:

Direct material 1400

Direct labor 600

Manufacturing overhead applied 900

Total 2900

2900/Unit completed 200

=15

1.

Cost of goods sold

= (80 X $68) + (40 X $15) - $800

=5440+600-800

=6040-800

= $5,240

Finished goods JobA256

= 100- 80

= 20

Finished goods JobA258

=200 - 40

= 160

2.

Finished goods

= (20 X $68) + (160 X $15)

= $1,360+$2,400

=$3,760

3.

Calaculation of total value of work in process Cost of JobA257 and JobA260

Job A257

Beginning balance 500

Charged to the jobs during October:

Direct material 3500

Direct labor 1000

Manufacturing overhead applied 900

Total 5900

JobA260

Beginning balance $0

Charged to the jobs during October:

Direct materials $3,500

Direct labor 400

Manufacturing overhead applied 600

Total $4,500

Addition of the total of both JobA257 and JobA260

$5900 +$4,500=$10,400

answer; the correct answer is (direct foreign investment);