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

question 84

Multiple Choice

Eccles 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 $384,000 and credited for $325,900. The ending balance in the Finished Goods inventory account was $72,100. At the end of the year, manufacturing overhead was underapplied by $5,400.
-The balance in the Finished Goods inventory account at the beginning of the year was:

• A) $72,100
• B) $5,400
• C) $14,000
• D) $58,100

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Definitions:

Climate

A pattern of weather conditions in an area over a long period of time.

Sediment

Particles of organic or inorganic matter that accumulate in a solid layer on the bottom of a body of water or other liquid due to the process of sedimentation.

Naked Eye

Relating to the ability to see or observe an object or event unaided by any optical instruments, such as telescopes or microscopes.

Sandstone

A sedimentary rock consisting of sand-sized mineral particles or rock fragments compacted and cemented together.