If Manufacturing Overhead Has Been Underallocated During the Period, Then

question 109

Multiple Choice

If manufacturing overhead has been underallocated during the period, then

• A) the jobs produced during the period have been undercosted.
• B) the jobs produced during the period have been costed correctly.
• C) all the jobs produced during the period have been overcosted.
• D) the jobs undercosted were greater in amount than those overcosted.

---

Definitions:

FIFO

First In, First Out; an inventory valuation method where the first items placed in inventory are the first to be removed or sold.

Market Value

The current price at which an asset or service can be bought or sold in a marketplace.

FOB Destination

A shipping term indicating that the seller is responsible for the goods until they reach the specified destination and have been delivered.

Consignment

A business arrangement where goods are left in the possession of an authorized third party to sell, but the title to the goods remains with the seller until sold.