Ajax Company Accumulated the Following Account Information for the Year

question 10

Multiple Choice

Ajax Company accumulated the following account information for the year: Using the above information, total factory overhead costs would be:

• A) $9,800.
• B) $16,800.
• C) $15,800.
• D) $13,000.
• E) $7,800.

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Definitions:

Cost Flow Assumption

An accounting method used to value inventory and determine the cost of goods sold, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).

Specific Identification

Specific identification is an inventory valuation method that tracks the cost of individual items in inventory and matches those costs with the items' actual sale.

Inventory System

A method for tracking the quantities, locations, and statuses of products a company has in stock, both for sales and production purposes.

Computerized

Systems or processes that are performed or managed by computers, typically involving automation of manual tasks.