Mcadams Inc

question 60

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

• A)$517, 080
• B)$496, 920
• C)$712, 140
• D)$702, 000

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Definitions:

QBO

Stands for QuickBooks Online, which is an accounting software designed to manage sales, expenses, and keep track of daily business transactions.

Liabilities

Financial obligations or debts owed by a business to outside parties, which must be settled over time through the transfer of economic benefits.

Equity Section

Part of a company's balance sheet that represents the owners' share of the corporation, including retained earnings and issued stock.

Profit & Loss Statement

A financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, typically a fiscal quarter or year.