Maple Company Uses a Job Costing System

question 234

Multiple Choice

Maple Company uses a job costing system. Maple Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31. Allocated manufacturing overhead costs for August amount to $50,000.
What is the amount of work in process inventory (before any adjustment for overallocated or underallocated manufacturing overhead) on August 31?

• A)$57,500
• B)$167,000
• C)$35,500
• D)$138,500

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Definitions:

Limited Liability

A form of legal protection for shareholders and owners that limits their losses to the amount of investment in the company, protecting personal assets from company debts and liabilities.

Double Taxation

Double Taxation is a tax principle referring to income taxes being paid twice on the same source of earned income. It can occur when income is taxed at both the corporate level and personal level, or in two different countries.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders; it has rights and liabilities independent of those owners and can enter into contracts, sue, and be sued.

Sole Proprietorships

A business structure where a single individual owns and operates the business, bearing full responsibility for its debts and obligations.