Coggin Inc

question 62

Multiple Choice

Coggin 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.In April the company completed job F68F that consisted of 24,000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job F68F shows that the total cost for the job was $1,408,800.During the month,the actual manufacturing overhead cost incurred was $464,400 and the manufacturing overhead cost applied to job F68F was $460,800.And during the month,15,000 completed units from job F68F were sold.No other products were sold.The cost of goods sold that would appear on the income statement for April is closest to:

• A)$1,408,800
• B)$1,412,400
• C)$884,100
• D)$876,900

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Definitions:

Sensitivity Analysis

A technique used to determine how different values of an independent variable impact a particular dependent variable under a given set of assumptions.

Variance Analysis

The process of examining differences between planned financial outcomes and actual financial performance.

Ratio Analysis

A quantitative analysis of information contained in a company's financial statements, used to evaluate performance, liquidity, profitability, and solvency.

Financial Statement Items

The individual line entries that make up financial statements such as the balance sheet, income statement, and statement of cash flows, detailing financial performance and position.