Erholm Inc

question 66

Multiple Choice

Erholm Inc.has provided the following data for the month of March.The balance in the Finished Goods inventory account at the beginning of the month was $43,000 and at the end of the month was $42,000.The cost of goods manufactured for the month was $221,000.The actual manufacturing overhead cost incurred was $45,000 and the manufacturing overhead cost applied to jobs was $49,000.The adjusted cost of goods sold that would appear on the income statement for March is:

• A)$218,000
• B)$220,000
• C)$222,000
• D)$221,000

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the tax rate that applies to each additional dollar of taxable income.

Average Tax Rate

The percentage of total taxable income that is paid in taxes, calculated by dividing the total tax paid by the total taxable income.

Taxable Income

The portion of income that is subject to taxation after allowances, deductions, and exemptions.

Progressive Taxes

A tax system in which the tax rate increases as the taxable amount increases, meaning higher income individuals pay a higher percentage of their income in taxes.