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

question 33

Multiple Choice

Bruni 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 has provided the following data for February:
-The cost of goods manufactured for February is closest to:

• A)$130,000
• B)$126,000
• C)$119,000
• D)$123,000

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Definitions:

Revenue

The total amount of money generated by a company from its business activities, such as sales of goods or services, before any expenses are deducted.

Salaries Payable

A liability account that records the amounts of wages earned by employees that have not yet been paid to them.

Salaries Expense

An accounting item that represents the total amount paid to employees in the form of salaries over a specific period of time.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.