Use the Information Below to Answer the Following Question(s)

question 33

Multiple Choice

Use the information below to answer the following question(s) .
Addison Company uses a job costing system. Addison Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31.
Manufacturing overhead cost is allocated at the rate of $10 per direct labour hour. Actual manufacturing overhead costs for August amount to $42,000.
-What is the amount of work in process inventory (after any adjustment for overallocated or underallocated manufacturing overhead) on August 31 at Addison Company?

• A) $61,000
• B) $30,000
• C) $113,000
• D) $160,000