The Following Partially Completed T Accounts Summarize the Transactions of Carlton

question 28

Multiple Choice

The following partially completed T accounts summarize the transactions of Carlton Company for last year:
At the end of the year,the company closes out the balance in the Overhead account to Cost of Goods Sold.
The cost of goods manufactured is

• A) $59,600.
• B) $61,600.
• C) $62,600.
• D) $63,600.

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Definitions:

Fixed Cost

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Marginal Cost

Marginal Cost is the increase or decrease in the total cost of production resulting from producing one additional unit of a product.

Variable Cost

Refers to expenses that change in proportion to the production output or activity level of a company.

Fixed Cost

This is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.