Echenko Corporation Uses a Job-Order Costing System and Applies Overhead

question 87

Multiple Choice

Echenko Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for $380,000 and credited for $335,500. The ending balance in the Finished Goods inventory account was $62,300. At the end of the year, manufacturing overhead was overapplied by $2,900.
-The balance in the Finished Goods inventory account at the beginning of the year was:

• A)$2,900
• B)$62,300
• C)$44,500
• D)$17,800

---

Definitions:

Driveshaft

A mechanical component used to transmit torque and rotation from the vehicle's engine to the wheels, typically found in rear-wheel and four-wheel drive vehicles.

Transmission

The system in a vehicle that transmits mechanical power from the engine to the drive axle, regulating speed and torque.

Gear Ratios

The ratios of the gear teeth counts between interconnected gears in a transmission, determining how much torque is applied.

Highway

A main road, especially one connecting major towns or cities, designed for faster traffic.