Mowers Inc

question 74

Multiple Choice

Mowers 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.During December,the cost of goods manufactured was $126,000 and manufacturing overhead was underapplied by $5,000.The beginning finished goods inventory was $31,000 and the ending finished goods inventory was $35,000.
-The cost of goods sold that appears on the income statement for December and that has been adjusted for any underapplied or overapplied overhead is closest to:

• A)$130,000
• B)$126,000
• C)$117,000
• D)$127,000

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Definitions:

Offensive Contact

In tort law, an act that would offend a reasonable person's personal dignity or integrity without their consent.

Transferred Intent

A legal principle allowing the intent to harm one individual to be transferred to another individual who was actually harmed.

Battery

An intentional act that causes harmful or offensive contact with another person's body.

Rock

A naturally occurring solid aggregate of one or more minerals or mineraloids found in the Earth's crust.