Crombie Inc

question 21

Multiple Choice

Crombie 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 has provided the following data for June: The cost of goods sold that appears on the income statement for June and that has been adjusted for any underapplied or overapplied overhead is closest to:

• A)$166, 000
• B)$141, 000
• C)$114, 000
• D)$170, 000

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Definitions:

Segment Margin

The amount of profit or loss generated by a specific segment of a business, considering only the revenues and expenses directly attributable to that segment.

Division's

A specific segment or branch of a company or organization that operates semi-independently or focuses on a particular task, product line, or service.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and treats fixed manufacturing overhead as an expense of the period.

Retail Clothing Store

A business establishment that purchases clothing from manufacturers or wholesalers and sells these directly to consumers.