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

question 59

Multiple Choice

Buth 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.During May, the cost of goods manufactured was $145, 000 and manufacturing overhead was overapplied by $3, 000.The beginning finished goods inventory was $47, 000 and the ending finished goods inventory was $49, 000. The cost of goods sold that appears on the income statement for May and that has been adjusted for any underapplied or overapplied overhead is closest to:

• A)$145, 000
• B)$140, 000
• C)$147, 000
• D)$146, 000

---

Definitions:

Sales or Lease Contract

A legal agreement where a seller agrees to transfer the ownership of goods to a buyer for a price, or a lessor agrees to grant the use of a property to a lessee for a specified period in return for payment.

Provision

A specific condition or requirement outlined in a legal document, contract, or agreement.

Express Warranty

An express warranty is a seller's promise or guarantee that a product will meet a certain quality or functionality standard.

Value or Worth

The importance, usefulness, or monetary valuation of something, often subject to change based on market demand or condition.