Toan Incuses a Job-Order Costing System in Which Any Underapplied or or Overapplied

question 17

Multiple Choice

Toan Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In September the company completed job S80M that consisted of 23, 000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job S80M shows the following costs: During the month, the actual manufacturing overhead cost incurred was $270, 020 and 3, 000 completed units from job S80M were sold.No other products were sold during the month. The unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for September is closest to:

• A)$989, 000
• B)$129, 000
• C)$129, 120
• D)$922, 300

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Definitions:

Supply Equation

A mathematical expression that shows the relationship between the quantity of a good that producers are willing to sell and factors that influence this quantity, such as price.

Price Floor

A government or group-imposed price control that sets the lowest legal price a commodity can be sold at. It is used to ensure producers receive a minimum price often in agriculture.

Shortage/Surplus

Shortage occurs when demand exceeds supply, while surplus occurs when supply exceeds demand.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a market.