ASDesign Corporation Reports the Following Cost Information for March What Is the Amount of Manufacturing Overhead Incurred by the

question 26

Multiple Choice

A.S.Design Corporation reports the following cost information for March: $$\begin{array} { | l | r | } \hline \text { Cost of Goods Manufactured } & \$ 80,000 \\\hline \text { Finished Goods Inventory, March 1 } & 4,500 \\\hline \text { Finished Goods Inventory, March 31 } & 2,700 \\\hline \text { Work-in-Process Inventory, March 1 } & 9,670 \\\hline \text { Work-in-Process Inventory, March 31 } & 1,000 \\\hline \text { Direct Labor } & 36,300 \\\hline \text { Direct Materials Used } & 16,900 \\\hline\end{array}$$
What is the amount of manufacturing overhead incurred by the company in March?

• A) $35,030
• B) $143,870
• C) $18,130
• D) $17,130

---

Definitions:

Process Costing System

An accounting method used to allocate costs to units of product in continuous processes or industries where the products are indistinguishable from each other.

Equivalent Unit

A measure used in cost accounting to represent the amount of work done on partial units of production, making them comparable to fully completed units.

Cost Reconciliation Report

A report that reconciles the total costs incurred with the costs accounted for in a specific period, used in cost accounting to ensure accuracy.

Work In Process Inventory

Inventory category in manufacturing representing goods that have been started but not yet completed, highlighting a transition state in production.