Stone Cliff Company Manufactures Custom-Order Furniture

question 89

Multiple Choice

Stone Cliff Company manufactures custom-order furniture.During 2020, actual manufacturing overhead totaled $720,000.Based on the 2020 results, and projected production for 2021, management prepared the 2021 budget and estimated that manufacturing overhead would total $800,000.The estimated number of direct labor hours for 2021 is 50,000, and the estimated amount of direct labor cost is $1,000,000.The company plans to use direct labor hours as the basis to allocate overhead to jobs.During May and June 2021, employees worked on the following four jobs: All jobs were started in May.Jobs X87 and A33 were completed and delivered to customers during June.What is cost of goods sold for June?

• A)$370,400
• B)$585,040
• C)$214,640
• D)$402,800

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Definitions:

Mistake of Law

An error made by a person in understanding the law as it pertains to their actions, which generally is not considered a defense in criminal law.

Duress

A situation where someone acts against their will or is forced into an agreement or decision under pressure or threat.

Improper Threat

A form of coercion that is illegitimate or unethical, used to induce another party to act in a manner they otherwise would not.

Assertion

An assertive declaration of truth or conviction.