Burghardt Inc

question 34

Multiple Choice

Burghardt Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. The company's cost of goods manufactured for January was $249,000 and its beginning and ending inventories were: During the month, the manufacturing overhead cost incurred was $79,000 and the manufacturing overhead cost applied was $80,000. The cost of goods sold that appears on the income statement for January and that has been adjusted for any underapplied or overapplied overhead is closest to:

• A)$249,000
• B)$259,000
• C)$238,000
• D)$261,000

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Definitions:

Income Taxes

Taxes on an individual's or corporation's income imposed by the government.

Modified Accelerated Cost Recovery System (MACRS)

The system of accelerated depreciation allowed for federal tax computations.

5-Year Asset

An asset that is expected to provide economic value or service for a period of five years.

Computers

Electronic devices designed to process, store, and communicate information, playing a crucial role in both personal and professional settings.