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Westcom Corporation's Goods in Transit at December 31 Include (1)

question 60

Multiple Choice

Westcom Corporation's goods in transit at December 31 include (1) sales made FOB destination, (2) sales made FOB shipping point, (3) purchases made FOB destination, and (4) purchases made FOB shipping point.Which items should be included in Westcom's inventory at December 31?

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Definitions:

Job-Order Costing System

A costing method used to accumulate costs of production by job or batch, suitable for manufacturing processes producing unique products or jobs.

Overapplied

Refers to a situation where the manufacturing overhead allocated to products is more than the actual manufacturing overhead incurred.

Underapplied

Describes a situation in cost accounting when the allocated manufacturing overhead costs are less than the actual overhead incurred, leading to a discrepancy that needs adjustment.

Job-Order Costing System

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

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