Mcadams Inc

question 78

Multiple Choice

Mcadams 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 April the company completed job C21F that consisted of 18, 000 units of one of the company's standard products.No other jobs were in process during the month.The total manufacturing cost on job C21F's job cost sheet was $702, 000.The manufacturing overhead for the month was underapplied by $10, 080.During the month, 13, 000 completed units from job C21F were sold.No other products were sold during the month. The unit product cost for job C21F is closest to:

• A)$29.00
• B)$39.00
• C)$54.78
• D)$54.00

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Definitions:

Marginal Cost

The expense incurred from the production of an extra single unit of a product or service.

Total Cost

The complete cost of production that involves both fixed and variable costs to produce a given level of output.

Cherry Orchard

A cultivated area where cherry trees are grown for fruit production.

Marginal Cost

The cost of producing an additional unit of a good or service.