Manufacturing Overhead Costs Allocated to a Job Amounted to $491,000

question 131

True/False

Manufacturing overhead costs allocated to a job amounted to $491,000.The actual manufacturing costs incurred during the year were $580,000.Overhead costs have been underallocated.

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Definitions:

Net Markdowns

The total decrease in the selling price of merchandise over a period, minus any markdown cancellations or recoveries.

Freight-in Charges

Costs incurred in bringing inventory to its present location and condition, typically including transportation charges.

LIFO Retail Inventory Method

An inventory costing method that assumes the last items placed in inventory are sold first, not necessarily reflecting the actual physical flow of merchandise.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus cost of goods sold.