In the Vasquez Corporation, Any Overapplied or Underapplied Manufacturing Overhead

question 305

Multiple Choice

In the Vasquez Corporation, any overapplied or underapplied manufacturing overhead is closed out to Cost of Goods Sold. Last year, the Corporation incurred $27,000 in actual manufacturing overhead cost, and applied $29,000 of manufacturing overhead cost to jobs. The beginning and ending balances of Finished Goods were equal, and the Corporation's Cost of Goods Manufactured for the year totaled $71,000. Given this information, Cost of Goods Sold, after adjustment for any overapplied or underapplied manufacturing overhead, for the year must have been:

• A) $98,000
• B) $73,000
• C) $71,000
• D) $69,000

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Definitions:

Symbolize

To represent, stand for, or express something else, often abstract, through the use of symbols.

Lemon

A citrus fruit with a sour taste, or colloquially, a defective or unsatisfactory item, especially a car.

Bought

Acquired in exchange for money or its equivalent; purchased.

Symbolize

The act of representing objects, actions, or ideas with symbols.