Before Prorating the Manufacturing Overhead Costs at the End of 2008,the

question 43

Multiple Choice

Before prorating the manufacturing overhead costs at the end of 2008,the Cost of Goods Sold and Finished Goods Inventory had applied overhead costs of $57,500 and $20,000 in them,respectively.There was no work in process at the beginning or end of 2008.During the year,manufacturing overhead costs of $74,000 were actually incurred.The balance in the Applied Manufacturing Overhead was $77,500 at the end of 2008.If the under- or overapplied overhead is prorated between Cost of Goods Sold and the inventory accounts,how much will be the Cost of Goods Sold after the proration?

• A)$58,403
• B)$56,597
• C)$60,197
• D)$54,903

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Definitions:

Cognitive-behavioral

Relating to cognitive-behavioral therapy (CBT), a type of psychotherapy that involves modifying dysfunctional emotions, behaviors, and thoughts through a goal-oriented, systematic approach.

Humanistic-existential

An approach in psychology that emphasizes individuality, free will, and the search for meaning in one’s existence.

Sociocultural

Pertaining to the combination of social and cultural factors that influence an individual or community.

Irrational Thinking

Thought processes characterized by unreasonable, flawed, or distorted perceptions of reality, often leading to negative emotional and behavioral outcomes.