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

question 8

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 cost of goods sold that would appear on the income statement for September, after adjustment for any underapplied or overapplied overhead, is closest to:

• A)$989, 010
• B)$128, 080
• C)$989, 910
• D)$129, 920

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Definitions:

Foreign Goods

Products that are produced in a different country than where they are sold or consumed.

Net Capital Outflow

The gap between nationals purchasing assets from abroad and foreigners investing in the nation's assets.

Loanable Funds

A term used in economics to describe the market where savers supply funds for loans to borrowers.

Net Capital Outflow

The imbalance between domestic individuals acquiring assets abroad and foreigners securing assets domestically.