The Last Department in a Production Process Shows the Following

question 135

Multiple Choice

The last department in a production process shows the following information at the end of the period: $$\begin{array} { l r } &\text { Units }\\\text { Beginning Work in Process } & 25,000 \\\text { Started into Production } & 240,000 \\\text { Ending Work in Process } & 50,000\end{array}$$ How many units have been transferred out to finished goods during the period?

• A)240,000.
• B)265,000.
• C)290,000.
• D)215,000.

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Definitions:

Job-Order Costing System

A costing system used to accumulate and assign costs to custom orders, projects, or jobs, typically in manufacturing or services.

Overapplied

When the overhead cost allocated to products exceeds the actual overhead costs incurred, requiring adjustment.

Underapplied

A situation where the actual manufacturing overhead costs are higher than the amount allocated to products.

Job-Order Costing System

A job-order costing system is an accounting method that tracks and accumulates costs for individual jobs or batches, which are distinct and can be separately identified.