The Cost of Goods Sold (After Adjustment for Underapplied or Overapplied

question 44

Multiple Choice

The cost of goods sold (after adjustment for underapplied or overapplied overhead) is:

• A) $58,000.
• B) $65,000.
• C) $69,000.
• D) $72,000.

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Definitions:

Accord And Satisfaction

A legal contract whereby two parties agree to discharge a tort claim, contract, or disputed claim by an agreement (the accord) and payment (the satisfaction) that differs from the original agreement.

Liquidated Debt

A fixed and settled debt amount that is acknowledged by both the debtor and the creditor.

Preexisting Duty

A legal principle that states a promise to do something that one is already legally obligated to do is not sufficient consideration for a new contract.

Unilateral Contract

A promise made by one party in exchange for the performance of a task or action by another party.