Deck 4: Job Costing

Question 1

Which one of the following is the amount that actual factory overhead exceeds the factory overhead applied?

A)Factory overhead applied.
B)Actual factory overhead.
C)Overapplied overhead.
D)Allocated factory overhead.
E)Underapplied overhead.

Answer 1

E

Question 2

Product costing provides useful cost information for the following except:

A)Both manufacturing and non-manufacturing firms.
B)Product and service cost determination and inventory measurement.
C)Management planning,cost control,and performance evaluation.
D)Financial reporting.
E)Developing an ethical climate within the organization.

Answer 2

E

Question 3

Departmental rates are appropriate when:

A)Most products pass through the same processes.
B)Departments are similar in function.
C)Departments have dissimilar cost drivers.
D)Normal costing is used.

Answer 3

C

Question 4

Volume-based cost accounting systems often do a poor job of product costing because they:

A)Use only volume-based cost drivers.
B)Fail to recognize the impact of overhead in product cost.
C)Often do not reflect changes in major cost categories caused by plant automation.
D)Too often use an allocation base that does not have a cause-effect relationship to resource usage.

Question 5

Under conventional job costing,factory overhead costs are assigned to products or services using labor or machine hours which are:

A)Multiple cost pools.
B)A homogeneous cost pool.
C)Volume-based cost drivers.
D)Nonvolume-based cost drivers only.

Question 6

Cost system design/selection should consider all but which one of the following?

A)Cost/benefit of system design/selection.
B)A firm's strategy and management information needs.
C)Cost/benefit of system operation.
D)Customer attitudes.
E)Nature of the business,product,or service.

Question 7

Operation costing is a hybrid costing system for products and services that uses:

A)Job costing to assign labor costs.
B)Process costing to assign conversion costs.
C)Normal costing to assign all costs.
D)Throughput costing.

Question 8

Product costing system design or selection involves all of the following except:

A)A strong commitment to the balanced scorecard.
B)Requires an understanding of the nature of the business.
C)Should provide useful cost information for strategic and operational decision needs.
D)Should be cost effective in design and operation.
E)May require substantial resources.

Question 9

The key distinction between job costing and process costing is:

A)The difference in detail required by each approach.
B)The use made of the collected data.
C)Strictly an accounting difference.
D)The cost object for which costs are accumulated.
E)The standards applied.

Question 10

The ideal criterion for choosing an allocation base for overhead is:

A)Ease of calculation.
B)A cause-and-effect relationship.
C)Ease of use.
D)Its preciseness.
E)Its applicability.

Question 11

Which of the following can produce unit product costs that fluctuate significantly?

A)Actual costing system.
B)Standard costing system.
C)Normal costing system.
D)Industry costing system.

Question 12

Which one of the following records and summarizes the costs of direct materials,direct labor,and factory overhead for a particular job?

A)Purchase order.
B)Material requisition form.
C)Job product cost document.
D)Bill of materials.
E)Job cost sheet.

Question 13

The two main advantages of using predetermined factory overhead rates are to provide more accurate unit cost information and to:

A)Simplify the accounting process.
B)Provide cost information on a timely basis.
C)Insure transmission of correct data.
D)Extend the useful life of the cost data.
E)Adjust for variances in data sources.

Question 14

If a firm is following the cost leadership strategy,and overhead accounts are complex,then the:

A)Firm should use a process costing system.
B)Firm can use either a process or job costing system.
C)Traditional volume-based job costing will not usually provide the need cost accuracy.
D)Only recourse is to install a hybrid costing system.
E)Firm should attempt to collect only material and labor costs.

Question 15

Standard costs are:

A)Planned costs the firm should attain.
B)Associated with direct materials and factory overhead only.
C)Associated with direct labor and factory overhead only.
D)Targeted low costs the firm should strive for.

Question 16

The three major differences between process and job order costing systems are those relating to:

A)Quantity,quality,and cost.
B)Speed,accuracy,and design.
C)Cost object,product or service variety,and timing of unit cost calculation.
D)Responsibility for cost,system design,and authorization codes.

Question 17

Volume-based rates are appropriate in situations where the incurrence of factory overhead:

A)Is related to multiple cost drivers.
B)Is related to several non-homogeneous cost drivers.
C)Is related to a single,common cost driver.
D)Varies considerably from period to period.
E)Is relatively small in amount.

Question 18

A normal costing system uses actual costs for direct materials and direct labor,and:

A)Budgeted costs for factory overhead.
B)Estimated factory overhead costs based on material cost.
C)Estimated factory overhead costs based on labor cost.
D)Estimated costs for factory overhead.
E)Charges actual factory overhead as a lump sum.

Question 19

Which one of the following is the amount of factory overhead applied that exceeds the actual factory overhead cost?

A)Factory overhead applied.
B)Actual factory overhead.
C)Overapplied overhead.
D)Allocated factory overhead.
E)Underapplied overhead.

Question 20

Which one of the following is used by the production department supervisor to request the materials for production?

A)Purchase order.
B)Material requisition.
C)Bill of materials.
D)Product job cost schedule.
E)Job cost sheet.

Question 21

Normal spoilage is defined as:

A)Spoilage that occurs under efficient operations.
B)Scrap.
C)Uncontrollable waste as a result of a special production run.
D)Spoilage that arises under inefficient operations.
E)Controllable spoilage.

Question 22

For job costing in service industries,overhead costs are usually applied to jobs based on:

A)Factory overhead.
B)Indirect labor.
C)Indirect materials.
D)Direct labor-hours or dollars.
E)Direct materials.

Question 23

When completed units are sold:

A)Cost of Goods Sold account is credited.
B)Cost of Goods Manufactured account is credited.
C)Finished Goods Inventory account is credited.
D)Work-in-Process Inventory account is credited.
E)Finished Goods Inventory account is debited.

Question 24

The system where the cost of a product or service is obtained by assigning costs to masses of similar units in each department and then computing unit cost on an average basis is called

A)A process costing system.
B)A job costing system.
C)An activity-based costing system.
D)An inventory materials control system.

Question 25

Beckner Inc.is a job-order manufacturer.The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs.For 2010,estimated direct labor hours are 133,000 and estimated factory overhead is $785,300.The following information is for September 2010.Job X was completed during September,while Job Y was started but not finished.Round calculations to two significant digits.
Cost of goods manufactured for September is:

A)$105,600
B)$157,300
C)$169,400
D)$145,500
E)$210,700

Question 26

ABC Company listed the following data for 2010:
Assuming ABC Company applied overhead based on direct labor hours,the company's predetermined overhead rate for 2010 is:

A)$43.50 per direct labor hour.
B)$14.38 per direct labor hour.
C)$44.24 per direct labor hour.
D)$14.50 per direct labor hour.
E)$14.41 per direct labor hour.

Question 27

A hybrid costing system that uses job costing to assign direct materials costs,and process costing to assign conversion costs to products or services is:

A)Process costing.
B)Operation costing.
C)Actual costing.
D)Product costing.
E)Job costing.

Question 28

Beckner Inc.is a job-order manufacturer.The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs.For 2010,estimated direct labor hours are 133,000 and estimated factory overhead is $785,300.The following information is for September 2010.Job X was completed during September,while Job Y was started but not finished.Round calculations to two significant digits.
The total factory overhead applied during September is:

A)$79,300.
B)$57,572.
C)$73,750.
D)$68,120.
E)$51,710.

Question 29

Abnormal spoilage:

A)Is considered part of good production.
B)Arises under efficient operating conditions.
C)Is controllable in the short run.
D)Is unacceptable spoilage that should not occur under efficient operating conditions.
E)Is part of inventory product cost.

Question 30

Vadis Inc.is a job-order manufacturer.The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs.For 2010,estimated direct labor hours were 114,000 and estimated factory overhead was $695,400.The following information was for September 2010.Job X was completed during September,while Job Y was started but not finished.
The total cost of Job X is:

A)$153,628.
B)$128,220.
C)$151,900.
D)$129,672.
E)$140,855.

Question 31

Vadis Inc.is a job-order manufacturer.The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs.For 2010,estimated direct labor hours were 114,000 and estimated factory overhead was $695,400.The following information was for September 2010.Job X was completed during September,while Job Y was started but not finished.
The underapplied or overapplied overhead for September is:

A)$1,590 underapplied.
B)$1,590 overapplied.
C)$920 overapplied.
D)$920 underapplied.
E)$1,452 underapplied.

Question 32

All of the following items are debited to the Work-in-Process Inventory account except:

A)Cost of the completed goods being transferred out of the plant.
B)Direct labor cost consumed/incurred.
C)Direct materials cost consumed/used.
D)Applied factory overhead cost.

Question 33

Factory overhead can be over- or under-applied because:

A)Some actual factory overhead cost varies from year to year.
B)Most actual factory overhead costs are within the budget.
C)Production volume may vary from expected volume.
D)Actual costing is used.

Question 34

Which of the following industries is more suitable for using a job costing system?

A)Chemical plants.
B)Petroleum product manufacturing.
C)Medical clinics.
D)Cement manufacturing.
E)Food processing.

Question 35

The total cost of direct materials,direct labor,and factory overhead transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account during an accounting period is:

A)Normal cost of goods sold.
B)Adjusted cost of goods sold.
C)Total manufacturing cost.
D)Cost of goods manufactured.
E)Actual cost of goods sold.

Question 36

Beckner Inc.is a job-order manufacturer.The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs.For 2010,estimated direct labor hours are 133,000 and estimated factory overhead is $785,300.The following information is for September 2010.Job X was completed during September,while Job Y was started but not finished.Round calculations to two significant digits.
The total ending work-in-process for September is:

A)$68,000
B)$101,000
C)$133,450
D)$157,300
E)$53,400

Question 37

The journal entry required to record factory depreciation includes:

A)A debit to the Cost of Goods Manufactured account.
B)A debit to the Factory Overhead account.
C)A debit to the Depreciation Expense account.
D)A debit to the Accumulated Depreciation account.

Question 38

When completed units are transferred to the warehouse:

A)Cost of Goods Sold account is debited.
B)Cost of Goods Manufactured account is debited.
C)Finished Goods Inventory account is debited.
D)Work-in-Process Inventory account is debited.
E)Finished Goods Inventory account is credited.

Question 39

Vadis Inc.is a job-order manufacturer.The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs.For 2010,estimated direct labor hours were 114,000 and estimated factory overhead was $695,400.The following information was for September 2010.Job X was completed during September,while Job Y was started but not finished.
The total factory overhead applied during September is:

A)$59,300.
B)$57,572.
C)$57,848.
D)$56,120.
E)$57,710.

Question 40

Beckner Inc.is a job-order manufacturer.The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs.For 2010,estimated direct labor hours are 133,000 and estimated factory overhead is $785,300.The following information is for September 2010.Job X was completed during September,while Job Y was started but not finished.Round calculations to two significant digits.
The underapplied or overapplied overhead for September is:

A)$2,350 underapplied.
B)$2,350 overapplied.
C)$950 overapplied.
D)$950 underapplied.
E)$1,452 underapplied.

Question 41

A job in which a quantity of products is ordered by a single customer is more likely to be an example of:

A)the pull method of production.
B)the resource-based method.
C)the push method of production.
D)the lean method of production.

Question 42

ABC Company listed the following data for 2010:
The journal entry to dispose of overapplied/underapplied overhead,if overhead is applied based on direct labor hours,would include a credit to:

A)Work-in-Process Inventory.
B)Cost of Goods Sold.
C)Finished Goods Inventory.
D)Factory Overhead Control.
E)Materials Inventory.

Question 43

Sutherland Company listed the following data for 2010:
Assuming Sutherland applied overhead based on direct labor hours,the company's predetermined overhead rate for 2010 is (round to two significant digits):

A)$23.20 per direct labor hour.
B)$23.60 per direct labor hour.
C)$22.24 per direct labor hour.
D)$22.50 per direct labor hour.
E)$22.85 per direct labor hour.

Question 44

Jackson Inc.listed the following data for 2010:
Round calculations to two significant digits.
Assuming Jackson Inc.applied overhead based on direct labor hours,the firm's predetermined overhead rate for 2010 is:

A)$14.20 per direct labor hour.
B)$14.38 per direct labor hour.
C)$15.24 per direct labor hour.
D)$15.50 per direct labor hour.
E)$15.85 per direct labor hour.

Question 45

NUV Company manufactures products to customer specifications.A job costing system is used to accumulate production costs.Factory overhead cost was applied at 125% of direct labor cost.Selected data concerning the past year's operation of the company are presented below.
The normal cost of goods sold during the year is:

A)$847,000.
B)$848,750.
C)$834,750.
D)$876,750.
E)$816,750.

Question 46

NUV Company manufactures products to customer specifications.A job costing system is used to accumulate production costs.Factory overhead cost was applied at 125% of direct labor cost.Selected data concerning the past year's operation of the company are presented below.
The cost of direct materials used for production is:

A)$351,000.
B)$297,000.
C)$342,000.
D)$306,000.
E)$324,000.

Question 47

NUV Company manufactures products to customer specifications.A job costing system is used to accumulate production costs.Factory overhead cost was applied at 125% of direct labor cost.Selected data concerning the past year's operation of the company are presented below.
The cost of goods manufactured during the year is:

A)$847,000.
B)$848,750.
C)$834,750.
D)$876,750.
E)$816,750.

Question 48

ABC Company listed the following data for 2010:
If overhead is applied based on direct labor hours,the overapplied/underapplied overhead is:

A)$15,300 underapplied.
B)$15,300 overapplied.
C)$10,800 underapplied.
D)$10,800 overapplied.
E)$-0-.

Question 49

Job costing in the printing industry often has the following general framework.Job cost equals:

A)direct materials cost plus direct labor plus applied overhead based on machine hours.
B)direct materials cost plus conversion costs applied on the basis of labor hours.
C)direct materials cost,plus outside purchase costs,plus cost applied on the basis of labor hours.
D)materials purchases,labor incurred and applied overhead based on labor hours.

Question 50

Sutherland Company listed the following data for 2010:
Round calculations to two significant digits.
If overhead is applied based on direct labor hours,the overapplied/underapplied overhead is:

A)$214,376 underapplied.
B)$214,376 overapplied.
C)$256,312 underapplied.
D)$256,312 overapplied.
E)$225,680 underapplied.

Question 51

Sutherland Company listed the following data for 2010:
Assuming Sutherland applied overhead based on machine hours,the company's predetermined overhead rate for 2010 is (round to two significant digits):

A)$44.00 per machine hour.
B)$41.98 per machine hour.
C)$38.31 per machine hour.
D)$35.90 per machine hour.
E)$41.18 per machine hour.

Question 52

ABC Company listed the following data for 2010:
If overhead is applied based on machine hours,the overapplied/underapplied overhead is:

A)$15,300 underapplied.
B)$15,300 overapplied.
C)$10,800 underapplied.
D)$10,800 overapplied.
E)$-0-.

Question 53

Jackson Inc.listed the following data for 2010:
Round calculations to two significant digits.
Assuming Jackson Inc.applied overhead based on machine hours,the firm's predetermined overhead rate for 2010 is:

A)$27.40 per machine hour.
B)$29.38 per machine hour.
C)$31.71 per machine hour.
D)$33.50 per machine hour.
E)$37.41 per machine hour.

Question 54

Jackson Inc.listed the following data for 2010:
Round calculations to two significant digits.
If overhead is applied based on direct labor hours,the overapplied/underapplied overhead is:

A)$166,855 underapplied.
B)$166,855 overapplied.
C)$174,775 underapplied.
D)$174,775 overapplied.
E)$-0-.

Question 55

ABC Company listed the following data for 2010:
Assuming ABC applied overhead based on machine hours,the company's predetermined overhead rate for 2010 is:

A)$43.50 per machine hour.
B)$14.38 per machine hour.
C)$44.24 per machine hour.
D)$14.50 per machine hour.
E)$14.41 per machine hour.

Question 56

In job costing,the job might consist of:

A)a single product
B)a batch of identical products
C)a batch of similar products
D)a single,well-defined service project
E)a single product,a batch of products,or a single well-defined service project

Question 57

Sutherland Company listed the following data for 2010:
Round calculations to two significant digits.
If overhead is applied based on machine hours,the overapplied/underapplied overhead is:

A)$187,298 underapplied.
B)$187,298 overapplied.
C)$176,358 underapplied.
D)$176,358 overapplied.
E)$-0-.

Question 58

A good example of a software system(s)that can be used to prepare job cost reports is:

A)Oracle
B)Microsoft Access
C)There are a variety of software systems,often designed specifically for a particular industry
D)Microsoft Excel

Question 59

Jackson Inc.listed the following data for 2010:
Round calculations to two significant digits.
If overhead is applied based on machine hours,the overapplied/underapplied overhead is:

A)$36,440 underapplied.
B)$36,440 overapplied.
C)$48,374 underapplied.
D)$48,374 overapplied.
E)$-0-.

Question 60

NUV Company manufactures products to customer specifications.A job costing system is used to accumulate production costs.Factory overhead cost was applied at 125% of direct labor cost.Selected data concerning the past year's operation of the company are presented below.
The total manufacturing costs for the year are:

A)$847,000.
B)$848,750.
C)$834,750.
D)$876,750.
E)$816,750.

Question 61

ABC Company uses a Materials Inventory account to record both direct and indirect materials.During the month of April,the company has the following cost information:
The amount of direct materials issued is:

A)$110,000
B)$40,000
C)$90,000
D)$20,000
E)$50,000

Question 62

ABC Company uses a Materials Inventory account to record both direct and indirect materials.Overhead is applied to production.During the month of April,the company has the following cost information:
The debit to Factory Overhead account is:

A)$110,000
B)$40,000
C)$90,000
D)$20,000
E)$50,000

Question 63

If estimated annual factory overhead is $480,000;overhead is applied using direct labor hours;estimated annual direct labor hours are 200,000;actual March factory overhead is $41,000;and actual March direct labor hours are 17,000;then overhead is:

A)$800 overapplied.
B)$200 overapplied.
C)$800 underapplied.
D)$200 underapplied.
E)$1,000 underapplied.

Question 64

L & L,CPAs,employs two full-time professional CPAs and five support employees.Budgeted direct salary costs include $150,000 for each CPA.The employees are considered as indirect costs,and this cost was budgeted for $200,000 though the actual cost was $225,000.Actual salaries were $155,000 for each CPA.Direct and indirect costs are applied on a CPA-labor-hour basis.Total budgeted CPA-labor-hours were 5,000.If a client used 500 labor-hours,what are the budgeted direct-cost rate and the budgeted indirect-cost rate,respectively?

A)$100;$40.
B)$60;$40.
C)$90;$40.
D)$110;$40.
E)$107;$45.

Question 65

ABC Company uses a Materials Inventory account to record both direct and indirect materials.During the month of April,the company has the following cost information:
The ending materials inventory cost is:

A)$110,000
B)$40,000
C)$90,000
D)$20,000
E)$50,000

Question 66

Operation costing uses which of the following costing systems?

A)A
B)B
C)C
D)D

Question 67

Maple Mount Fishery is a canning company in Astoria.The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs.Budgeted factory overhead for 2010 was $680,400,and management budgeted $324,000 of direct labor costs.During the year,the company incurred the following actual costs.
The January 1,2010 balances of inventory accounts are shown below.
The December 31,2010 balances of these inventory accounts were ten percent lower.The adjusted cost of goods sold,after under- or overapplied overhead,during the year is:

A)$1,332,600.
B)$1,354,700.
C)$1,357,600.
D)$1,373,600.
E)$1,339,300.

Question 68

At the end of a fiscal year,overapplied factory overhead should be:

A)Debited to Cost of Goods sold.
B)Credited to Cost of Goods sold.
C)Debited to Cost of Good Manufactured.

Question 69

Maple Mount Fishery is a canning company in Astoria.The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs.Budgeted factory overhead for 2010 was $680,400,and management budgeted $324,000 of direct labor costs.During the year,the company incurred the following actual costs.
The January 1,2010 balances of inventory accounts are shown below.
The December 31,2010 balances of these inventory accounts were ten percent lower.
The amount of direct materials purchased during the year is:

A)$391,000.
B)$388,000.
C)$377,000.
D)$380,000.
E)$374,000.

Question 70

Dye Co.uses a job cost system and predetermines a factory overhead rate based on the amount of expected fixed costs and expected volume.At the conclusion of the fiscal year,overapplied overhead could be explained by which of the following?

A)A
B)B
C)C
D)D

Question 71

The following are types of rework except:

A)Rework on normal defective units common to all jobs.
B)Rework on abnormal defective units not falling within the normal range.
C)Rework on normal defective units for a particular job.
D)Rework on returned merchandise.

Question 72

NUV Company manufactures products to customer specifications.A job costing system is used to accumulate production costs.Factory overhead cost was applied at 125% of direct labor cost.Selected data concerning the past year's operation of the company are presented below.
The adjusted cost of goods sold during the year is:

A)$847,000.
B)$848,750.
C)$834,750.
D)$876,750.
E)$816,750.

Question 73

ABC Company uses a Materials Inventory account to record both direct and indirect materials.Overhead is applied to production.During the month of April,the company has the following cost information:
The debit to Work-in-Process Inventory account is:

A)$110,000
B)$40,000
C)$90,000
D)$20,000
E)$50.000

Question 74

Maple Mount Fishery is a canning company in Astoria.The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs.Budgeted factory overhead for 2010 was $680,400,and management budgeted $324,000 of direct labor costs.During the year,the company incurred the following actual costs.
The January 1,2010 balances of inventory accounts are shown below.
The December 31,2010 balances of these inventory accounts were ten percent lower.The total manufacturing costs for the year are:

A)$1,332,600.
B)$1,354,700.
C)$1,336,700.
D)$1,373,600.
E)$1,339,300.

Question 75

Orange,Inc.has identified the following cost drivers for its expected overhead costs for the year:
Total direct labor hours budgeted = 2,000 hours.The following data applies to one of the products completed during the year:
If Orange,Inc.uses direct labor hours to assign overhead,the unit product cost for Product X will be:

A)$60.00.
B)$70.00.
C)$80.00.
D)$90.00.
E)$180.00.

Question 76

ABC Company uses a Materials Inventory account to record both direct and indirect materials.During the month of April,the company has the following cost information:
The credit to the materials inventory account is:

A)$110,000
B)$40,000
C)$90,000
D)$20,000
E)$50,000

Question 77

Maple Mount Fishery is a canning company in Astoria.The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs.Budgeted factory overhead for 2010 was $680,400,and management budgeted $324,000 of direct labor costs.During the year,the company incurred the following actual costs.
The January 1,2010 balances of inventory accounts are shown below.
The December 31,2010 balances of these inventory accounts were ten percent lower.The normal cost of goods sold during the year is:

A)$1,332,600.
B)$1,354,700.
C)$1,336,700.
D)$1,373,600.
E)$1,339,300.

Question 78

Orange,Inc.has identified the following cost drivers for its expected overhead costs for the year:
Total direct labor hours budgeted = 2,000 hours.The following data applies to one of the products completed during the year:
If Orange,Inc.uses machine hours to allocate overhead cost,the unit product cost of Product X will be:

A)$60.00.
B)$80.00.
C)$90.00.
D)$110.00.
E)$130.00.

Question 79

Maple Mount Fishery is a canning company in Astoria.The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs.Budgeted factory overhead for 2010 was $680,400,and management budgeted $324,000 of direct labor costs.During the year,the company incurred the following actual costs.
The January 1,2010 balances of inventory accounts are shown below.
The December 31,2010 balances of these inventory accounts were ten percent lower.
The predetermined factory overhead rate is:

A)212% of direct labor costs.
B)215% of direct labor costs.
C)222% of direct labor costs.
D)203% of direct labor costs.
E)210% of direct labor costs.

Question 80

Maple Mount Fishery is a canning company in Astoria.The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs.Budgeted factory overhead for 2010 was $680,400,and management budgeted $324,000 of direct labor costs.During the year,the company incurred the following actual costs.
The January 1,2010 balances of inventory accounts are shown below.
The December 31,2010 balances of these inventory accounts were ten percent lower.The cost of goods manufactured during the year is:

A)$1,332,600.
B)$1,354,700.
C)$1,336,700.
D)$1,373,600.
E)$1,339,600.