Figure 5-8

question 140

Multiple Choice

Figure 5-8. John's Water Slides makes custom water slides for hotels.On September 1,there were three jobs in process,Jobs 812,813,and 814.Two more jobs were started during September,Jobs 815 and 816.By September 30,Jobs 812,814,and 816 were finished.The following data has been collected:
Overhead is applied at the rate of 120% of direct labor cost.Jobs are sold at cost plus 60%.Selling and administrative expenses for September totaled $2,950.By September 30,Jobs 812 were 816 are sold,but the customer who ordered Job 814 decided he did not want the slide so it is still in the warehouse.
Refer to Figure 5-8.What is the cost of goods sold for September?

• A)$5,129
• B)$8,206.40
• C)$5,720
• D)$3,575
• E)$8,586

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Definitions:

Pretax Income

Income of a company before taxes are deducted; also known as earnings before tax.