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

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Definitions:

Comprehensive Income

The change in equity of a company during a period from transactions and other events excluding any changes resulting from investments by and distributions to owners.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, essentially representing the owners' claim against the company's assets.

Comprehensive Income

The total change in equity for a reporting period other than transactions from owners, including all revenues, gains, expenses, and losses.

Total Assets

The sum of all assets owned by a company, as reported on the balance sheet, that are expected to provide future economic benefits.