Bega Incuses a Job-Order Costing System in Which Any Underapplied or or Overapplied

question 40

Multiple Choice

Bega 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.The company's cost of goods manufactured for October was $203,000 and its beginning and ending inventories were: During the month,the manufacturing overhead cost incurred was $63,000 and the manufacturing overhead cost applied was $61,000. The cost of goods sold that appears on the income statement for October and that has been adjusted for any underapplied or overapplied overhead is closest to:

• A)$203,000
• B)$189,000
• C)$219,000
• D)$185,000

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Definitions:

Aldosterone

Hormone secreted by the adrenal cortex that regulates the sodium and potassium ion balance of the blood.

ADH

Antidiuretic Hormone, also known as vasopressin, a hormone that helps regulate the body's balance of water by reducing the amount of water excreted in urine.

ACTH

Adrenocorticotropic hormone, a polypeptide tropic hormone produced and secreted by the anterior pituitary gland that stimulates the adrenal cortex.

Parathyroid Gland

Gland embedded in the posterior surface of the thyroid gland; it produces parathyroid hormone.